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Aimed Course Instructor Compensation Theory and Practice (HARM 380) School of Business North South university Subject: Submission of the case on “Telexed Canada- A Culture of Innovation. ” We would like to thank you for assigning us coursework for the course Compensation Theory and Practice. This case study has given us the opportunity to combine our theoretical knowledge with a practical scenario In the case. We worked as a team to solve the case as you taught in the class. We would like to thank you for giving us the opportunity to solve the case and work with a strong and reliable team.We believe that the knowledge and experience that we have acquired while working with this case will Immensely help us In our future professional life.

We have tried to make use of our best knowledge to analyze the project as meticulously as possible and it surely had offered us the opportunity to enhance our knowledge on Compensation Theory and Practice of Telexed Canada. We have concentrated our best effort to achieve the objectives of study and hope that this endeavor will serve the purpose. However, we will always be ready to provide any further clarification that you may require. Sincerely, Group A HARM 380, section 1 1.In the next section we have discussed analysis of the case that consists of the Theme which outlines most challenging factors that involves the publics resentment the main essence of the case where we discussed about details in their compensation and incentive policies.

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The Main Issue part has however picked up the most important & significant point of the case. It may be noted that Main Issue has ended up with question how it can be solved or how the whole situation is resolved. We have done PESTLE Analysis of this case where Political factors arose with Telexed.

Accordingly economical factors determines the current position of a country in the global market is as necessary as to see whether the country falls under developed or developing nations, then economical factors of the country is one of the main factors that should be considered. Social factors includes the difference that environment has brought up in the stores and their development in the growing market. Telexed has used the extensive technology to save time and effort and Legal factors are important for ensuring ethical practices in the business.Lastly, environmental factors include the competition that they faced. The Human Resource Issue is the statement that talks about how Telexed has been operation in consequences of issues that arose during their daily successful operation. In Recommendation, we have tried to dig out the problems that Telexed Canada faced and emphasized giving the best solution on developing effective and efficient employment structures or other cost effective means of HER management more practicable solution within limitations and restraints.Lastly, in Implementation we have discussed how to solve the problems broadly. We have discussed how to implement and conduct to resolve all the problems.

No. Name Page No. 01. Background 02.

Theme 9 03. Main Issue 10 PESTLE Analysts 11 05. HER Issues 18 Recommendation 21 Implementation 26 Telexed Canada is a counterpart company of Telexed Incorporated and it is best known for the innovations in the manufacturing industry which consists of products from many range for instance from marine hydraulic steering to heat equipment for both the trucks and buses industries over the past 30 years.It is also regarded as the pioneer of designing and manufacturing hydraulic and thermal technology products. By maintaining a variegated and consolidated culture inside the company, the many has been able to create revolutionary products- products that have been meeting the demands of customers over the past years. And, it has the potential of becoming a leading company in nearer future as the growth rate is very high.

Ethnicity Innovation of Telexed Canada Telexed Canada that is a partition of Telexed incorporation is well prominent for the production of a variety of products which includes marine hydraulic steering systems, trim components for marine propulsion, heating equipment for the truck and bus industries, a range of proprietary fluid controls, and field cook stoves for the manufacture of hydraulic and thermal technological products. The company had to go through many questions that arose in many different manners.Telexed Canada Executives had to face various questions for instance if the size would inhibit the ability to innovate or not, would increased corporate centralization at Telexed Inc. Impact Telexed Canada’s ability to respond quickly to new market opportunities, Could the culture of innovation in Telexed Canada be transferred to other parts of the company and what was the appropriate level of corporate support and control accessory to foster innovation and high performance at Telexed Canada and at other Telexed business units.Inside Telexed Canada there was a consensus that continual innovation in product design, manufacturing, and marketing was critical to the success of the organization. Telexed Incorporation is a diversified manufacturing company, which was headquartered in Limerick, Pennsylvania, Just outside Philadelphia. The company had three principal business segments. Which are as follows: Commercial Medical Aerospace They built many range of products for several companies.

A mixture of products for automotive, naval, and engineering markets, including manual and automatic gearshift systems, transmission guide controls, mechanical and hydraulic steering systems, vehicle pedal systems, heavy-duty cables, hoisting and rigging equipment for oil drilling and other industrial markets; mobile auxiliary power units used for heating and climate control in heavy-duty trucks, industrial vehicles, locomotives and fluid management products for automobiles and pleasure boats were manufactured by the commercial segment. Telexed Inc. Also concentrates on manufacturing health are supply and surgical devices including anesthesiology devices, sutures, legation solutions, chest drainage systems, and high-quality surgical and orthopedic instruments. They have more of these segments which deals with the manufacturing of commercial and military aerospace, power generation, and industrial turbine machinery markets. Aerospace businesses provided repair products and services for flight and ground-based turbine engines; manufactured precision-machined components and cargo-handling systems; and provided advanced engine surface treatments.Products in the Commercial segment were generally produced in higher nit volumes than that of the company’s other two segments. Marine and Industrial Hydraulic Systems Telexed Canada began during the year 1974 when Telexed Inc. Purchased part of Chaplain Engineering, as mall machine shop in Vancouver that was developing hydraulic steering systems for boats.

At that time, another Telexed unit was producing marine steering systems with mechanical cable steering. Telexed Canada available before.Telexed Canada’s hydraulic steering systems and they are as follows: Sea Star Sea Star Pro Bay Star All of these were designed to enable more comfortable control of pleasure boats. These products fundamentally changed the marine steering industry. In 2004 Telexed Canada sold more than 100,000 Sea Star systems, an increase of more than 30% over the previous year (retail prices for the higher-end products ranged from about $1 ,500 per system, while lower-end systems were about $250).The company had an estimated 95% market share in North America and 50% share in markets outside the continent. Telexed Canada’s steering products were usually among the highest-priced products available in the marketplace. The marine steering industry had two main market segments.

They are as follows: One of the segment was the marine distribution and dealer network that sold Telexed-branded products to boat companies and individual boat owners. Sales of marine products were split almost equally between original equipment manufacturers like Volvo Pentane and aftermarket dealers.A second segment includes stern drive engine companies like Volvo Pentane that would purchase a private label steering system and integrate it with their engine to provide a complete steering and controls package to boat builders.

At the same time as talking about the steering services Telexed Canada also reduced components for marine engine companies like Bombardier and Volvo Pentane. These products were referred to as industrial actuation systems. During the year 1985 Telexed Canada began licensing an engine governor technology for large diesel trucks.In 1990 ancillary heater business for large trucks and buses was purchased from Cummins, which led to the development of the Preheat vehicle heater product line. The heater technology was adapted in the year 1997 to create cook stoves, which was known as modern burner units (Mbps), for use in army field kitchens. A major contract was signed with the U.

S. Military for the production of Mbps. By 1999 Telexed was producing 10,iambus per year for military purposes.

Telexed Canada innovation focused on product and market development that solved customer problems or created new markets.Much of Telexed Canada’s success has come about because a demand was identified for new products in niche markets that were ready for a change in technology. The essential conviction of the executives of Telexed is that they don’t use any technology that is not proven. They prefer calling themselves product developers. They will not develop any technology that cannot be robust and highly reliable with a low repair requirement.

They take existing new (although sometimes new technology had to be invented to solve a customer’s problem). The executives here believe that Telexed Inc.Canada is a company that has been innovative in applications engineering as they focus on products they know they can sell because they are close to the market and know the customers very well. Here the executives think that the innovation of Telexed has a different meaning which can be understood by three questions. The questions are- How some market niche with that product can be penetrated and dominated? How reliable and robust products from that technology can be developed? How the existing technology can be exploited? However, Telexed Inc. Acquired Chaplain Engineering; the intent was to expand into new markets.At that time, the company was producing a heavy-duty commercial hydraulic steering system. In 1978 Telexed Canada introduced System, the world’s first low-cost hydraulic system for the mass pleasure boat market.

Cost was a big factor because System competed against low-priced mechanical steering systems. Unfortunately, System’s plastic parts deteriorated when used beyond their mechanical capability, leading to unsatisfied customers and a risk that Telexed Canada would SSE its position in hydraulic steering. At that time, Telexed Canada had about 10% of the hydraulic steering market (the largest competitor had a share of about 80%).A new hydraulic steering system called Sea Star: Easter is a product introduced by Telexed which was introduced during the year 1984. Easter became the leading product on the market.

In 1989 the new Easter was introduced. The mandate for the development team was smaller size to expand the potential market, lower cost, and better performance. Using some patented technology (a floating spigot); the new Easter was 30%cheaper to produce, 18% more efficient, and sold at the same price as the older model. In 1993 Easter Pro was introduced and was very successful in the Bass boat market where performance was the primary purchase criterion.Bay Star, introduced in 2002 for the lower-end market, was very successful (although it used up part of its innovation to fix the sales of a mechanical steering system produced by another Telexed division).

Here Telexed came up with new and different innovative strategy. What they did is to regain their reputation in the marketplace; they had to come out with an overkill approach with the product. They developed a much more sophisticated and rugged all-metal system, which became Easter. This decision involved heated internal debates because the development costs were substantial. This required a lot of trust from IBM Black (Telexed Inc.Chairman and former CEO). He was willing to take some risk in the investment. There were a lot of skeptics.

But, the hydraulics technology was well proven and being used in automotive systems. They were applying existing technology to a customized marketplace. From a technology perspective, the risk was (from another Telexed Inc. Business unit) was not going to satisfy customers as boat engines got bigger and more difficult to steer. This is what their concept was behind launching their new technology.

Energy product development to get into heaters: They bought a product line from Cummins Engine.Cummins was not successful with the product. So, they bought the remaining inventory. This got their foot in the door, and it is much easier start a business when you have something to sell.

When they did the deal with Cummins, they had already concluded that the product [the truck heater] was not any good. They did the deal anyway because it got them into a new arrest that they thought they could serve better with new products. The development of the truck heater, along with several other products, including a heater portents used by the military, provided Telexed Canada with a solid base of experience in combustion technology.This led to the development of the military cockatoos called the Modern Burner Unit ( MBA).

The MBA used the same combustion technology as the truck heater and could be used as a block heater, passenger heatstroke, barbeques, or oven. The MBA project started with an inventor who had built a prototype stove. The inventor was ablate convince the U. S. Army to UT the project out for bid based on the specifications he had developed in his prototype. Later on Telexed Inc.Canada focused more on few strategies which includes the following: Pull-through Strategy: Rather than designing products and then looking for channels through which to sell them, Teleconferenced focused on end users. Executives described this strategy as a pull-through strategy.

In this strategy the end users were the main sector of concentration and the design, looking for channels were not a matter of concern. Vertical Integration: Telexed Canada had always been vertically integrated. There was a consensus that, in he future, there would be less vertical integration. All the customers wanted the company to be as cost-effective as possible.In the past the company was incredibly vertically integrated. Relationships with Telexed Inc.

: Within all of Telexed Inc. There was an ongoing debate about the merits of centralization and unified operating processes. Within Telexed Canada, this debate was particularly relevant given the history of the subsidiary (I. E.

, 3,000 miles from headquarters) and its successful innovations. The bigger area of conflict from a corporate unified perspective involves market and product development, who owns it, ND how do they keep the innovation happening Managing Size: Telexed Canada has grown rapidly over the past three decades.Size has brought a variety of challenges.

Every time they made a big Jump in revenue, there were benefits and downsides. Getting big can be a problem, which is one reason why Harold split the company into three divisions?he saw that they were accomplishing well and growing accordingly. Forward thinking: New product development and New Technologies: New product development was were generally confident that the organization would continue to develop and exploit existing technologies. The bigger challenge is dealing with new technologies. The risk is that existing products get replaced by new technologies in which we have no expertise.It is very obvious that hydraulics will go away eventually, and the market will demand more comfort at lower prices. The boat builders may integrate steering into their outboards.

Most stern drive engine steering uses a cable with a power steering system. Telexed has a splendid reputation due to its well development in innovation and quality service for which they are the world leader. Apart from all success there were few reasons that were potentially bothersome. Some of these were high development costs that came up with new and innovative products, being innovative is what Telexed Inc. s all about but high development costs eventually increases the risks of failure of the new product.

In 2004, the economic expenses were not under control and were relatively higher from the market. Relationship with Telexed Inc. Was another issue and delegation that arose problems like high costs, discrepancy in products etc. Maintaining the size of the organization was another enormous issue because the size is increasing and thus has to be managed effectively.

Finally, they re always below stress for new product development, because their obtainable products’ technology would become past it in the near future. ND adopt with its high growth rate, hi tech niche markets, prolonged market response time and vertical integration to achieve optimum performance and creativity with minimal cost? PASTEL Analysis is an analytical tool for business planning. It is a strategic framework for understanding external influences on a business. PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental and is used for marketing planning, business and strategic planning organizational hang, business and product development and research reports.By understanding these external environments, organizations can simply maximize their opportunities and minimize their threats to the organization. Political Analysis: When a company begins a business overseas it might face some political issues while expanding the business in other countries. And because of some of these issues some factors influences the company position and way they cooperate with in the business. Company’s way of dealing and conducting with such issue are certain mostly and are related to the political factors.

Past Factors: Telexed Canada started its business during the year 1974 by Telexed incorporation. The company didn’t agree with starting business from the scratch as it was really hard to startup new company in Canada. They would rather look around for acquisition and bought small companies that would allow them to have a new market. They bought part of Chaplain engineering, a small machine shop in Vancouver. Not only in Canada the company knew that politically this business is stable and will be profitable if they could target the perfect customers which they did by targeting the military.

The military has been helping them to increase their business by ordering new product from them as they have served them successfully in the previous project. Present Factors: The military are funding them for new projects in terms of political factors. The military is giving them the change to enhance their products and create new products for them.

They are always working for new technologies and trying to come up with new innovated products. Future Challenges: The way they are capturing the markets and innovating new technologies for the military, they have surely made them loyal towards them with their promising reduce value.The backing they are getting from military has a substantial part charge, rather they should reduce the amount of taxes for them as they are serving the military of that country. Economical Analysis: Determining the current position of a country in the global market is as necessary as to see whether the country falls under developed or developing nations, then economic factors of the country is one of the main factors that should be considered. This is the factor which we can relate with the current economic condition of the company.

Past Factors: Sales of Telexed Canada is now at the peak according to them.Telex’s products are innovative, are of high quality and add value to their customers. However, one of Telex’s primary weaknesses was its products were focused on the marine pleasure craft industry which was heavily tied to the economy, and its ups and downs. Present Fatsos: The marine pleasure craft industry is dependent on the economy. When the economy is good people have disposable income to spend on luxury goods such as marine pleasure crafts and when the economy is in decline luxury goods such as boats are one of the first markets to feel the pressure.Future Challenges: Their way of inventing gives them the upper hand to earn more money by inventing a new product when no one else has done it. This was possible since they believed in creating identity and differentiate themselves from the rest of the corporation.

Telexed Canada have acquired many companies so that they don’t need to start something from the scratch which helps them to be profitable sooner and without any hassle. Economically the company is very strong and at this moment the company has a good amount of sales.If they can continue this service then the ales will increase at a higher rate in the future. They are always working on what they are going bring in the future. This gives them a upper hand in predicting the future economical condition of the company Social Analysis: It is important to understand the social factors of a country as it might help to find the loop holes to make the most out of it.

Social factors inspect the social environment of the market, and measure determinants like cultural trends, demographics, population analytics etc. In the past, there were no such social factors that they had to deal with.

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