Premium Essay

Texas Instruments

In: Business and Management

Submitted By rvjacalan0222
Words 1293
Pages 6
Executive Summary

The case highlights the applicability of Texas Instruments Inc’s (TI) management system to another similar business entity-Harvey-Hudson Electronics (HHE). Management is trying to assess whether a similar system currently used in TI could be use in HHE’s system. Analysis of the current system in TI-OST system was being made through its different stages. Moreover, the imcentive compensation system of TI was also reviewed for its appropriateness in HHE.

Case Context

. Texas Instruments was a multinational corporation based in the US, producing a wide variety of products, especially in the electronics industry. It also maintained facilities in Canada, Latin America, Europe, Australia and Far East. Since 1946, the company’s sales had grown an average of 24% per year. Electronics industry was expected to boom in 1980s and sales were expecting to increase significantly. However, prices are also expected to lower down due to competition. Given the above scenario, inventories are expected to drop dramatically and would require a write-down in inventory valuation. Therefore, there was a basic conflict between production and innovation or research expenses versus production expenses. Growth on Texas Instruments was based on innovation as opposed to acquisitions. TI had been a technologically based company throughout its history. They further believed that innovation was necessary not only in the creation of improved products but also in the method of developing and marketing such products. This belief eventually led to the development of the OST system. Paul Elmer, VP for corporate planning at HHE was trying to understand the various systems and the applicability of TI’s system in the HHE.

Problem Definition

Should Harvey-Hudson Electronics (HHE) adopt the same management system of Texas Instruments (TI)?

Framework for Analysis and…...

Similar Documents

Free Essay

Texas Instruments

...Rendell Company Divisi pengontrol keuangan memiliki peran penting dalam pengelolaan urusan keuangan dari perusahaan mana pun. Mereka terlibat dalam mengawasi pelaporan informasi keuangan dan akuntansi di perusahaan. Biasanya, terdiri dari akuntan yang mengawasi aspek keuangan perusahaan, termasuk pemantauan dan implementasi pengendalian internal. Ini adalah posisi senior, dan pengontrol keuangan biasanya melapor ke CFO. Divisi pengontrol keuangan ini memiliki tanggung jawab mempersiapkan target profit dan anggaran untuk tiap divisi. Dalam studi kasus, ada dua tingkat yang berbeda dari pengontrol. Pengontrol keuangan perusahaan bertanggung jawab atas kegiatan keuangan secara keseluruhan pada Rendell Company, sedangkan pengontrol keuangan di tingkat divisi bertanggung jawab atas kegiatan keuangan dalam tingkat divisi. Pengontrol keuangan tingkat divisi memberikan laporan kepada manajer divisi yang selanjutnya laporan itu diteruskan ke divisi pengontrol perusahaan. Disisi lain, divisi pengontrol perusahaan juga melapor kepada direksi. Pada struktur seperti ini, pengontrol keuangan tingkat divisi bertindak seperti asisten dari manajer divisi. Ada dua masalah potensial yang mungkin terjadi karena struktur ini. Masalah pertama adalah bahwa manajer divisi memperoleh informasi dari pengontrol keuangan tingkat divisi, dan tidak mendapatkan informasi secara langsung. Karena itu menjadi sulit untuk pengontrol keuangan perusahaan untuk mendapatkan wawasan yang lebih dalam pada......

Words: 382 - Pages: 2

Premium Essay

Texas Instruments and Hewlett-Packard Case Solution

...Case Study 13-3: Texas Instruments and Hewlett-Packard Case Context: Texas Instrument (TI) and Hewlett Packard (HP) are two companies famous for introducing Electric and electronic products. Although competing in similar industries, their strategies are very much different. Problem Definition: Given the differences in strategy between two firms, what would you expect would be the differences between TI & HP in their planning and control system; strategic planning systems; budgeting systems; reporting systems; performance evaluation systems and incentive compensations systems. Inferred from the case, we expect some differences in planning and control system between Texas Instruments and Hewlett Packard. This paper will discuss and propose some strategic planning systems, budgeting systems, reporting systems, performance evaluation systems and incentive compensation system for each company. . Strategic Planning Systems: In term of corporate level strategy, both firms have the same definition of business in which the firm will participate. TI and Hewlett-Packard (HP) are both in high-technology electric and electronics. But, the second aspect of corporate level strategy, which is deployment of resources among the business, may be different for each firm depends on the objectives that they want to achieve and competitive advantages that they have. I am well known for its......

Words: 3796 - Pages: 16

Premium Essay

Brass Instruments

...6, 2012 Brass Instruments The brass family has a variety of instruments that have the ability to cover a wide range of sounds. Brass instruments have changed greatly since the beginning of time. Throughout history, the manufacturing of brass instruments has become more complex by using different materials, dimensions, and including valves. Compositions have been composed to show off the capabilities of brass instruments through concertos and solos. With that being said, famous musicians have created a reputation for their musical talents by playing instruments in the brass family. The sacbut and piccolo trumpet are two instruments included in the brass family and will be focused on due to their unique qualities. The brass family is a unique group of instruments that has helped change the compositions of music throughout history. History of Brass Instruments Before the history of brass can be described, people have to understand what a brass instrument entails, “a brass instrument is defined as an “aerophone,” which means it is an instrument where the musician must blow air into the instrument. The musician produces the tone by buzzing the lips into what is generally a cup-shaped mouthpiece. It doesn’t mean that the instrument is necessarily made of brass, since instruments that are made of other metals, wood, horn, or even animal bone are included in the family of brass instruments.” (Wilken) Before the Renaissance period, the brass instruments were very......

Words: 2568 - Pages: 11

Premium Essay

Major Features of Texas Instruments’ Management Systems

...Summarize the major features of Texas Instruments’ management systems. 2. How does Texas Instruments ensure that its operating managers appropriately allocate their time between short term and long term? 3. Why do you believe the OST System worked so effectively for TI in the 70s? why was not working effectively for company in the mid-to-late 80s? 4. Would systems like these be appropriate in other organizations, such as Harvey-Hudson Electronics? What implementation problems would you foresee? ANSWERS: NO.1 Texas Instruments (TI) is considered to be the pioneer of the American electronics industry. TI was first established in 1951 as an electronics company serving the American defense industry. In 1958, TI developed the first semiconductor integrated circuit. TI has three main lines of business in 1984: components, which included semiconductor integrated circuits, semiconductor subassemblies, and electronic control devices; digital products, which included mini computers, personal computers, scientific instruments, and calculators; and government electronics, which included radar system, missile guidance and control systems, and infrared surveillance systems. The major management system of TI is OST System, which is Objective, Strategies, and Tactics System. OST System is a system for managing change and innovation. The system was employed to define the strategies the company intended to follow for further growth and development and to identify the tactics required......

Words: 8423 - Pages: 34

Premium Essay

Texas Instruments 13.4

...1. Summarize the major features of Texas Instruments’ management systems. To what extent, and how, are these system mutually reinforcing? In 1960, Texas Instruments’ (TI) revenue reached $232 million, which was $32 million over company’s president Pat Haggerty’s announced goal of $200 million. However, the industry was facing a recession at the time, and Patrick Haggerty knew that TI needed to develop a system that would help with innovation and growth of the company. In 1962, Duddy Harris was assigned to find such system, which resulted in development of the OST System: Objectives, Strategies and Tactics. Pat Haggert believed that Texas Instruments must be consumer product centered. Under his leadership TI has organized itself into six major business groups. Each group was subdivided into divisions, which in turn is further divided into product customer centers (PCC), or profit centers. Each Product Customer Center (PCC) manager had responsibilities to Create, Make and Market product in their respective area. The goal of PCC is to allow the business to have a close relationship with customers, and enable an entrepreneurial environment for TI’s middle level managers. The major drawback of Texas Instruments profit center’s decentralized matrix system is the lack of control by top management, possibility of friction and conflict of interest between organization units. With over 80 different PCCs within TI; business cohesion can be a major issue. In order to keep......

Words: 3459 - Pages: 14

Premium Essay

Texas Instruments and Hewlett-Packard Case Solution

...Texas Instruments and Hewlett-Packard Case Solution In: Business and Management Texas Instruments and Hewlett-Packard Case Solution Case Study 13-3: Texas Instruments and Hewlett-Packard Case Context: Texas Instrument (TI) and Hewlett Packard (HP) are two companies famous for introducing Electric and electronic   products.   Although competing in similar industries, their strategies are very much different. Problem Definition: Given the differences in strategy between two firms, what would you expect would be the differences between TI & HP in their planning and control system; strategic planning systems; budgeting systems; reporting systems; performance evaluation systems and incentive compensations systems. Inferred from the case, we expect some differences in planning and control system between Texas Instruments and Hewlett Packard. This paper will discuss and propose some strategic planning systems, budgeting systems, reporting systems, performance evaluation systems and incentive compensation system for each company.                                                                         . Strategic Planning Systems: In term of corporate level strategy, both firms have the same definition of business in which the firm will participate. TI and Hewlett-Packard (HP) are both in high-technology electric and electronics. But, the second aspect of corporate level strategy, which is deployment of resources among the business, may be different for......

Words: 303 - Pages: 2

Premium Essay

Texas Instruments and Hewlett Packard

...Texas Instruments and Hawlett-Packard Strategic planning systems Texas Instruments is more diversified company, whereas, Hawlett – Packard single industry with related diversified firms. That is why we suggest TI to use vertical strategic planning system. Business units prepare strategic plans and submit them to senior management to review and approve. For related diversified and single industry firms, like HP, tend to use both vertical and horizontal. The horizontal dimension might be incorporated into the strategic planning process in a number of different ways. Moreover, tend to create new markets and exited as a cost- driven competitors entered and the market matured. In consequence, for HP importance of strategic planning is very high due to uncertainty of environment in a “build” strategy. However, Texas Instruments favored early entry, followed by expansion and consolidation of its position, resulting in dominant market share when the product matured. So, for TI importance of strategic planning is relatively low due to stable environment. Budgeting systems For Hawlett – Packard role of the budget is short-term planning tool, whereas, for Texas Instruments is control tool. HP is concentrated on more flexible production processes to meet the needs of its custom and low-volume markets, while TI concentrated on more capital-intensive and cost-effective production processes to supply its more standard, high-volume markets. For HP, this implies relatively high......

Words: 578 - Pages: 3

Free Essay

Negotiable Instrument

...TYPES OF NEGOTIABLE INSTRUMENTS n Draft: An unconditional order to pay by which the party creating the draft (the drawer) orders another party (the drawee), typically a bank, to pay money to a third party (the payee) -- e.g., a check. n n n n Check: A draft ordering a drawee bank and payable on demand. Time Draft: A draft payable at a time certain. Sight Draft: A draft payable on presentment. Trade Acceptance: A draft that is drawn by a seller of goods ordering the buyer to pay a specified sum of money to the seller, usually at a specified future time. The buyer accepts the draft by signing and returning it to the seller. n Promissory Note: A written promise made by one person (the maker) to pay a fixed sum of money to another person (the payee) on demand or at a specified future time. Certificate of Deposit: A note by which a bank or similar financial institution acknowledges the receipt of money from a party and promises to repay the money, plus interest, to the party on a certain date. 1 n NEGOTIABLE INSTRUMENTS: AN OVERVIEW n A Negotiable Instrument is a: (1) written instrument, (2) signed by the maker or drawer of the instrument, (3) that contains an unconditional promise or order to pay (4) an exact sum of money (with or without interest in a specified amount or at a specified rate) (5) on demand or at an exact future time (6) to a specific person, or to order, or to its bearer. 2 NEGOTIABILITY: SIGNATURES n For an instrument to be negotiable, it...

Words: 1157 - Pages: 5

Free Essay

Texas Instruments

...Tips: * Ciptakan kondisi menyenangkan saat melatih. * Cari cara mudah dan tidak membingungkan bagi anjing. * Tanamkan pada benak anjing bahwa anda adalah pemimpinnya. * Jangan bentak anjing jika tidak menuruti perintah. * Segera hentikan latihan jika anda mulai merasa jengah dalam melatih. Basic Trick: A. Sit 1. Siapkan treat atau makanan kesukaan anjing kesayangan anda. 2. Tarik leash atau pangkal leher keatas dan tekan bagian belakang anjing anda kebawah sambil berkata Sit. 3. Berikan treat atau makanan kesukaan anjing kesayangan anda dan tepuk bagian pinggir bahunya sebagai penghargaan. 4. Lakukan minimal 5 kali sehari, dalam 3-5 hari anjing anda akan mengerti arti Sit. B. Down 1. Harus dilakukan setelah anjing anda mengerti Sit. 2. Suruh anjing anda Sit, dan tarik leash atau collar kebawah sampai dia Down. 3. Katakan Down. 4. Beri anjing anda treat atau makanan kesukaannya dan tepuk bahu pinggirnya sebagai penghargaan. 5. Untuk trick ini lakukan 15 kali sampai 20 kali per hari, dalam 3-5 hari anjing anda akan mengerti arti Down. C. Hold 1. Untuk Hold, anda hanya perlu menyuruh dia melakukan hal-hal berbeda dalam pose yg berbeda,dan untuk tiap pose anda tahan posisinya dan katakan Hold. 2. Tidak perlu sering-sering. D. Stay 1. Untuk “Stay” anda hanya perlu memancingnya untuk lari,dengan melempar makanan atau mainan kesukaannya dan sebelum dia lari, tahan dibagian dada dan bokong sekaligus. 2. Tidak......

Words: 260 - Pages: 2

Premium Essay

Texas Instruments: Txn

...TEXAS INSTRUMENTS: TXN Texas Instruments: TXN Northeastern State University Table of Contents: Section I: Company History and Environment A.) Company Profile 3 References 8 Section II: Income Statement and Balance Sheet Analysis A.) Common Size Analysis (B.S. and I.S.) 10 B.) Identification & Explanation of Trends 11 References 12 Section III: Ratio Analysis A.) Ratio Profile 13 References 14 B.) Ratio Table for TXN and Peers 15 C.) Ratio Trends and Comparisons 16 Section IV: Valuation A.) Reformulated Balance Sheet 18 B.) Market Value of TXN Stock (ROPI) 19 C.) Spreadsheet Calculations 20 D.) Assumptions 21 E.) Estimate Price to Forecast Price 22 Section V: Summary and Conclusion A.) Summary 23 B.) Company Financial Appearance 24 References 25 Texas Instruments: TXN ) Company History and Environment Company History: Texas Instruments (TI) is a designer and manufacturer of microcontroller semiconductors and two forms of signal processing, analog and digital. It all began when Eugene McDermott, John Erik Jonsson, Patrick Eugene Haggerty, and Cecil H Green founded Texas Instruments in 1930. The company was originally named Geophysical Science, GSI, later it was changed to Coronado Corporation in 1939 before it was finally named Texas Instruments Incorporated in 1951 (History of Innovation). The founders of Texas......

Words: 5487 - Pages: 22

Premium Essay

Texas

...Management Supply chain management is that genre of management that deals with the activities ranging from procurement to allocation, distribution and final utilisation of the resources so as to find any deviations that may have resulted in faulty use and correct the same to promote optimum utilisation of resources. This will facilitate better organisation in the operational sphere of the organisation as well as a more systematic progression towards the process of achievement of goals. (Jesperson, 2005) The Case Study – Texan The information gained from these literary works will be analysed and correlated to the concept of supply chain management as it has been adapted within Texan. Texan Foods is a company founded and based in Texas, near Amarillo. Born in the year 1941, this company has grown from strength to strength to consolidate its standing as one of the best gourmet chain which specialises in grocery products. Their line of products includes croissants, English muffins as well as exotic sandwich breads, buns and other baked goods like tortillas. Besides being a household name by the mid 90s with ample support from a former oil businessman, R.L (Buddy) Howlett, who was its founder and a successful entrepreneur, this company had come to employ a major supplier who went by name of Valley. (Autry, 2005) As a big manufacturing company, it has been demonstrated that Texan has a very poor system of supply chain management as far as its model of......

Words: 11664 - Pages: 47

Premium Essay

Negotiable Instruments

...it is important to determine if the person currently possessing the instrument qualifies as a holder in due course. The basic definition is found in §3-302(a), which you should read carefully. Official Comment 4 to §3-302 makes it clear that the payee can qualify as a holder in due course in some rare situations. Normally, the payee is so involved in the underlying transaction that he or she has notice of problems affecting payment obligations, and thus cannot be a holder in due course. But the examples given in Official Comment 4 describe fact patterns where the payee is innocent of such knowledge and can therefore qualify for the protection given to holders in due course. See also Eldon’s Super Fresh Stores, Inc. v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 296 Minn. 130, 207 N.W.2d 282, 12 U.C.C. Rep. Serv. 490 (1973), for an example of the payee as a holder in due course. 35 36 3. Holders in Due Course Subsection (c) gives a list of extraordinary transactions — creditors seizing instruments by judicial process, the sale of an inventoried business (a ‘‘bulk transaction’’), or the appointment of the administrator of an estate containing negotiable instruments — in which the transferee is statutorily denied holder in due course status.1 A. ‘‘Holder’’ Note first of all that in order to be a holder in due course the possessor of the instrument must qualify as a holder. This means that the instrument must be technically negotiable and must have been......

Words: 34047 - Pages: 137

Premium Essay

Internal Analysis of Texas Instruments

...differentiated products, and support they need, whenever they need them. The firm actively engages with its customers and learns as much that it can about their needs in order to generate new, innovative products for their future applications on a constant basis. 3.1.2. Components of Strategy Corporate Mission Texas Instruments seeks to change the world “one chip at a time.” The company’s mission is to create analog and embedded processing products for power electronics across every industry. The company has interwoven integrity, commitment, and innovation throughout the fabric of its history in order to create and assist to make the world safer, smarter, more fun, greener, and healthier (Nishi &Doering, 2000). The firm considers integrity as its cornerstone, innovation its lifeblood and organizational commitment as its promise. Organization Culture Ethics is a foundation at the company and has been for the previous 80 years. The company has an inclusive culture, which focusses on what individuals bring to the table and what they can do for the company. The company’s performance culture expects that TI-ers perform well. 3.1.3. Competitive Strength Texas Instruments is an international design and manufacturing company, which provides global digital and analog semiconductor IC design. Additionally to analog technologies, microcontroller semiconductors, and digital signal processing, the firm manufactures and designs semiconductor solutions for digital and analogue......

Words: 1731 - Pages: 7

Premium Essay

Texas Instruments Essay

...Case #1 Texas Instruments Chris Healey Chris Healey Intermediate Accounting Professor Henry 10/19/2014 This case study is inspired by the SEC issued Proposed Rule 33-8098, “Disclosure in Managements’ Discussion and Analysis about the Application of Critical Accounting Policies” and how current companies live up to the objectives of this rule. For this case, I selected Texas Instruments (NASDAQ: TXN), one of the leading designers and manufacturers of semiconductors. This case will evaluate the degree to which Texas Instrument’s financial reports give the investor relevant information and faithfully represent the company’s true financial standing. This is the primary objective of Proposed Rule 33-8098. In addition, I will address the importance of the disclosure of critical accounting policies, the critical accounting policies that TXN discussed, why they are critical, how these policies align or contradict with the conceptual framework of financial reporting and if I believe that TXN may have left out some critical accounting policies. It is important for a company to disclose its critical accounting policies because investors use financial reports in investing decisions. The purpose of financial reporting is to provide investors with relevant information that faithfully represents the company’s financial standing. Unfortunately, this purpose is difficult to deliver. Accounting is by nature influenced by the inexact science of estimation, the ever-changing......

Words: 1327 - Pages: 6

Premium Essay

Texas Instrument Case Study

...Executive Summary My project is on country analysis of Israel focused on its agriculture sector. This project includes collecting information of agriculture activity of Israel, Israel’s geography, main agricultural products produced in Israel etc. but main purpose of this project is to doing a S.W.O.T Analysis of Israel’s agriculture sector to identified its strengths, weaknesses, opportunities and threats. This report includes how Israel makes their agriculture sector superior in compare to world’s other countries. 1|Page 1. Overview of Israel’s Agriculture Israel’s agriculture is characterized by high technological level, pressure irrigation systems, automatic and controlled mechanization and high quality seeds and plants. Israel meets most of its food requirements through domestic production to produce over 5 million tons of field crops, 1.15 billion liters of milk, 1.6 billion eggs and 1.2 billion flowers for export (Ministry of Agriculture, 2006). The total area of arable land is 377,300 hectares with 78% under cultivation. Water scarcity is the main limiting factor in Israeli agriculture and the country depends on irrigation to increase its crop yields; about 50% of the land is irrigated. Of the 1,129 million cubic meters (MCM) of water used by agriculture per year, some 30% of agricultural water is treated wastewater (TWW) for drip irrigation of orchards and non-food crops, while another 16% is saline water. The Ministry of Agriculture and......

Words: 14392 - Pages: 58