Kami Corporation

1
Kami Corporation

• Stephanie Bussiere
• Adolfo Lopez
• Jorge Delgado
• Whit Leverett

2
Mega Corporation

• Owned by the Lee family
• 40 Subsidiaries (1994)
• Consumer Electronics (includes Kami Corporation)
• Automobiles
• Real Estate
• Agriculture
• Aquaculture

3
Mega Corporation History

• Consumer Electronic Relationships
• Sony
• Samsung
• Sumida
• Murata
• Aiwa
• Megas Reputation

4
Philippines

• Governmental environment
• Import-substituting development strategy
• Trade barriers
• Tariffs
• Foreign Investment restrictions
• Effects on business
• Increased investments
• Export/Import consequences

5
Aiwa

• Subsidiary of Sony
• Technology leader
• World Production
• Audio
• TV
• Goals and strategy

6
Clark Special Economic Zone (CSEZ)

• U.S. Military Bases
• Clark Air Force Base
• Impact on economy
• Termination of agreement - 1991
• Subic Naval Base
• Mt. Pinatubo explosion
• Consequences

7
Mrs. Lee, Kami the CSEZ

• Need for new site for Aiwa plant
• Mrs. Lee tours area
• Ash, sand dust
• Warehouse
• Electricity and water supplies
• Meeting with Aiwa managers
• Decision to invest in CSEZ

8
The birth of Kami Corporation

• Agreement with Aiwa
• May 1994
• 80,000 units per month at full capacity
• 10,000,000 investment
• Exclusive relationship
• 2 models
• Sales to Japan, Middle East, Europe, South
  America
• Incompatible with Philippine reception

9
Kami Corporation

• Initial Production Start-Up
• Production numbers
• SKD and CKD kits
• Sourcing components
• Developing supplier relationships
• For the future
• Eventually open sales to local markets
• Five additional models

10
Kami Corporation

• Kamis head start
• Construction
• Production workers hired trained
• Customs difficulties hinder 1st deadline
• Problems begin
• Staffing conflicts
• Production issues

11
Kami Corporation - Staffing Conflicts

• The Players
• Mr. Uy acting General Manager
• Handles Megas Sony operations
• Temporary assignment
• Mr. Kee Production Operations Manager
• One of seven
• Resentment
• Mr. Olano incoming General Manager
• Accounting background
• Joined Mega Corp. in 1987
• Concerns for future

12
Kami Corporation Production Issues

• Inability to meet numbers
• Production lines
• Output capacity
• Supply issues
• Red tape
• Warehousing issues
• Poor planning
• Lack of coordination

13
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