Professional Timer
专业计时器

Case Discussion - Organizational Analysis and Change Management
案例讨论 - 组织分析和变革管理

(Not for Grading except class participation)
（除课堂参与外，不作评分之用）

Process
过程

Individually please spend 10 minutes reading the case.
请单独花 10 分钟阅读案例。

Team of 2, discuss questions 1 – 2, not question 3.
2 人小组讨论问题 1 – 2，而不是问题 3。

Appoint a speaker on behalf of the team.
代表团队指定一名演讲者。

Keep the case for further discussion at this stage.
在此阶段保留案例以供进一步讨论。

Background
背景

Your team belongs to a strategic change management consulting firm called LN People & Change Consulting. You are invited by the CEO of a Hong Kong-based company, “Professional Timer,” to formulate the e-commerce business strategy for mainland China and Hong Kong markets (if you prefer, the EU or the US market is also acceptable).
您的团队属于一家名为LN People & Change Consulting的战略变革管理咨询公司。香港公司“Professional Timer”的首席执行官会邀请您制定中国大陆和香港市场的电子商务业务策略（如果您愿意，也可以接受欧盟或美国市场）。

For your background, “Professional Timer” is a Hong Kong-based international company that manufactures, sells, and markets branded consumer electronics products internationally under the name Pro Timer. Products are mainly watches showing both time and weather conditions. The suggested retail price (SRP) is around US$100 per watch.
对于您的背景，“Professional Timer”是一家总部位于香港的国际公司，以 Pro Timer 的名义在国际上制造、销售和营销品牌消费电子产品。 P产品主要是同时显示时间和天气状况的手表。建议零售价 （SRP） 约为每只手表 100 美元。

“Professional Timer” does not have its factory. It outsources the production to private label manufacturers (so-called contract manufacturer or EMS) in Dongguan, PRC. Products are either designed locally (Hong Kong) or have licenses gained from international designers.
“Professional Timer” 没有它的工厂。该公司将生产外包给中国东莞的自有品牌制造商（所谓的合同制造商或 EMS）。产品要么是本地设计（香港），要么是从国际设计师那里获得许可。

(Guidance to all students – Foxconn is an example of contract manufacturer.)
（对所有学生的指导 – 富士康是合同制造商的一个例子。）

Recent 5 years
最近 5 年

“Professional Timer” has international operations located in Europe and USA, but 60% of revenue comes from the Hong Kong operations. For 2017, the revenue was US$60M; Gross Margin 40%; and Net profit 5%, which was US$3M.
“Professional Timer” 在欧洲和美国设有国际业务，但 60% 的收入来自香港业务。2017 年，收入为 US$60M; 毛利率 40%;净利润 5%，即 US$3M。

For the Hong Kong market, which was 60% of the total revenue and net profit, the growth from 2015 to 2017 was 10%. This modest growth was partly contributed by the slowing down of “inbound” mainland Chinese tourists. From 2017 to 2019, sales (revenue) dropped by 20%.
香港市场占总收入和净利润的 60%，2015 年至 2017 年的增长为 10%。这种温和的增长部分是由于“入境”中国大陆游客的放缓。从 2017 年到 2019 年，销售额（收入）下降了 20%。

Competition came from all sorts of consumer electronics gadgets, in particular western designer’s watches, smart phones, smart watches, and other timers.
竞争来自各种消费电子产品，尤其是西方设计师的手表、智能手机、智能手表和其他计时器。

Since the first quarter of 2019,
自 2019 年第一季度以来，

Sales / revenue dropped further across all markets, in addition to Hong Kong.
除香港外，所有市场的销售额/收入均进一步下跌。

Locally in Hong Kong, the mainland Chinese tourists had become increasingly selective in their purchase. They would buy a camera, luxury watches, European brand accessories, etc. type of products instead of the general consumer electronic product gadgets of “Professional Timer”.
在香港本地，中国大陆游客的购买越来越挑剔。他们会购买相机、豪华手表、欧洲品牌配件等类型的产品，而不是“专业计时器”的一般消费电子产品小工具。

It was difficult to diversify its product portfolio without additional capital investment. As mentioned, sales in Hong Kong had further dropped since 2019 due to the rapid reduction of inbound tourists.
如果不进行额外的资本投资，就很难实现其产品组合的多样化。如前所述，由于入境游客迅速减少，自 2019 年以来，香港的销售额进一步下降。

Despite the flat global economy, the product cost was also rising by 10% year on year, primarily due to inflation and the rising labor cost in mainland China.
尽管全球经济平淡无奇，但产品成本也同比上涨 10%，主要是由于通货膨胀和中国大陆劳动力成本上升。

More damage was done by the popularity of Smart Phones, which changed buying habits of many consumers both regarding product selection and shopping medium (via the internet instead of retail).
智能手机的普及造成了更大的损害，它改变了许多消费者在产品选择和购物媒介方面的购买习惯（通过互联网而不是零售）。

The US government imposed an import tax levy and further reduced the export to the US market. The COVID-19 pandemic since the early part of 2020 also reduced sales / revenue at almost all markets.
美国政府征收进口税，进一步减少对美国市场的出口。自 2020 年初以来的 COVID-19 大流行也减少了几乎所有市场的销售额/收入。

As a result, the gross margin fell below 40%. Profits for 2019 and 2020 turned from black to red. For the entire 2021, both sales and profit did not improve over the corresponding period. Cash flow had increasingly become an issue. The executive management implemented cost reduction programs, including the closure of 6 retail outlets in Hong Kong (out of 16) in 2022.
结果，毛利率降至 40% 以下。2019 年和 2020 年的利润由黑色变为红色。整个 2021 年，销售额和利润均未比同期有所改善。现金流越来越成为一个问题。执行管理层实施了降低成本计划，包括在 2022 年关闭香港的 6 家零售店（共 16 家）。

Current Situation
现状

The CEO and executive team are determined to accelerate the e-commerce business with a focus on the mainland China and Hong Kong markets.
首席执行官和执行团队决心加快电子商务业务，重点是中国大陆和香港市场。

Besides current products, they have also proposed to source more hand-wear sports and fitness products similar to those offered by Fitbit. They are also sourcing self-monitored home medical devices, e.g., blood sugar and blood pressure, which are similar to those offered by Omron. They believe “home medical measurement device” is a high growth segment in particular mainland China market, as 10% of the population is estimated to suffer from diabetes. In 2–3 years, they would also like to source household products like infant thermostats similar to Braun's.
除了现有的产品外，他们还提议采购更多类似于 F itbit 提供的手戴运动和健身产品。他们还采购自我监测的家用医疗设备，例如血糖 和血压，这些设备类似于 Omron 提供的设备。他们认为“家用医疗测量设备”是一个高增长的细分市场，尤其是中国大陆市场，因为估计有 10% 的人口患有糖尿病。在 2-3 年内，他们还希望采购家用产品，例如类似于 Braun 的婴儿恒温器。

(Guidance to all students – find out what products Fitbit and Omron are selling)
（对所有学生的指导 - 了解 Fitbit 和 Omron 在销售什么产品）

Discussion
讨论

Can LN People & Change Consulting conduct either a SWOT or PEST analysis for Professional Timer’s e-commerce business in mainland China and Hong Kong (EU or US market is also acceptable). (10 minutes)
LN People & Change Consulting能否对Professional Timer在中国大陆和香港的电子商务业务进行SWOT或PEST分析（欧盟或美国市场也可以接受）。（10 分钟）

Based on your SWOT or PEST, highlight the key areas / issues. (5 minutes)
根据您的 SWOT 或 PEST，突出关键领域/问题。（5 分钟）

What are the key areas of employee capability and product concerns that you would like to point out to the CEO for his (her) new e-commerce initiative based on the above analyses? (10 minutes)
根据上述分析，您想向 CEO 指出员工能力和产品关注的关键领域，以实施他/她的新电子商务计划？（10 分钟）

1. Can LN People & Change Consulting conduct either a SWOT or PEST analysis for Professional Timer’s e-commerce business in mainland China and Hong Kong (EU or US market is also acceptable)?
1. LN人员与变革咨询能否对Professional Timer在中国大陆和香港的电子商务业务进行SWOT或PEST分析（欧盟或美国市场也可以接受？

LN People & Change Consulting can conduct both SWOT and PEST analyses for Professional Timer's e-commerce business in the specified markets.
LN People & Change Consulting可以在指定市场为Professional Timer的电子商务业务进行SWOT和PEST分析。

SWOT Analysis:
SWOT 分析：

Strengths: The company has an established brand, Pro Timer, in the consumer electronics market. Its watches with time and weather features are recognized. It also has experience in international operations, which could be applied to e - commerce expansion. Additionally, its product design capabilities, whether local in Hong Kong or through licensed international designers, give it an edge in product aesthetics.
优势： 该公司在消费电子市场拥有知名品牌 Pro Timer。具有时间和天气功能的手表得到认可。它还拥有国际运营经验，可以应用于电子商务扩张。此外，无论是在香港本地还是通过国际授权设计师，其产品设计能力都使其在产品美学方面具有优势。

Weaknesses: Professional Timer lacks its own factory, relying on contract manufacturers. This may lead to issues in quality control and production timelines. Its product portfolio is currently limited, mainly centered around watches, and diversifying requires capital investment. In the Hong Kong market, the closure of retail outlets indicates financial strain and potential brand image damage.
弱点： Professional Timer 没有自己的工厂，依赖合同制造商。这可能会导致质量控制和生产时间表出现问题。其产品组合目前有限，主要以手表为中心，实现多元化需要资本投资。在香港市场，零售店关闭意味着财务压力和潜在的品牌形象损害。

Opportunities: The e - commerce market in mainland China, Hong Kong, EU, and US is growing rapidly. There is a chance to expand the product range into sports and fitness products, home medical devices, and household products, as the demand for such items is increasing. The company can target the large consumer base in these markets through online platforms.
机会： 中国大陆、香港、欧盟和美国的电子商务市场正在迅速增长。随着对此类产品的需求不断增加，有机会将产品范围扩展到运动和健身产品、家用医疗设备和家用产品。该公司可以通过在线平台瞄准这些市场的庞大消费者群。

Threats: Intense competition from various consumer electronics and watch brands, especially smartwatches and luxury watches. The rise of smartphones has changed consumer buying habits, reducing demand for traditional consumer electronics. Economic factors like inflation and currency fluctuations can impact product costs and pricing. The import tax levies and the impact of the COVID - 19 pandemic on sales are also significant threats.
威胁：来自各种消费电子产品和手表品牌的激烈竞争，尤其是智能手表和豪华手表。智能手机的兴起改变了消费者的购买习惯，减少了对传统消费电子产品的需求。通货膨胀和货币波动等经济因素会影响商品成本和定价。进口税征收和 COVID-19 大流行对销售的影响也是重大威胁。

PEST Analysis:
PEST 分析：

Political: The US government's import tax levy is a political factor affecting exports to the US market. Changes in trade policies between Hong Kong, mainland China, and other regions could impact the e - commerce business. For example, any new regulations on cross - border e - commerce in Hong Kong and mainland China could either facilitate or hinder the company's operations.
政治：美国政府的进口税征收是影响对美国市场出口的政治因素。香港、中国大陆和其他地区之间的贸易政策变化可能会影响电子商务业务。例如，香港和中国大陆关于跨境电子商务的任何新规定都可能促进或阻碍公司的运营。

Economic: The global economic slowdown, inflation, and rising labor costs in mainland China are economic factors. These lead to increased product costs, which may reduce profit margins. The economic situation also affects consumer purchasing power, especially in times of recession.
经济因素：全球经济放缓、通货膨胀和中国大陆劳动力成本上升是经济因素。这会导致产品成本增加，从而降低利润率。经济形势也会影响消费者的购买力，尤其是在经济衰退时期。

Social: Consumers' changing buying habits, influenced by smartphones and a preference for luxury and high - end products, are social factors. The growing interest in health and fitness, as well as home medical care, presents an opportunity for the company to enter new product segments.
社会因素：消费者不断变化的购买习惯、智能手机以及对奢侈品和高端产品的偏好是社会因素。人们对健康和健身以及家庭医疗保健的兴趣日益浓厚，这为公司进入新的产品领域提供了机会。

Technological: The advancement of technology in the consumer electronics industry, such as the development of smartwatches and mobile apps, poses a threat to Professional Timer's traditional products. However, technology also offers opportunities for e - commerce platforms, enabling the company to reach more customers and improve marketing strategies.
技术：消费电子行业的技术进步，例如智能手表和移动应用程序的开发，对 Professional Timer 的传统产品构成了威胁。然而，技术也为电子商务平台提供了机会，使公司能够接触到更多客户并改进营销策略。

2. Based on your SWOT or PEST, highlight the key areas / issues.
2. 根据您的 SWOT 或 PEST，突出关键领域/问题。

Based on SWOT:
基于 SWOT：

Key Strength - Brand and Design: The brand and design capabilities can be leveraged to attract customers in the e - commerce space. By promoting the unique design of its products, it can differentiate itself from competitors.
关键优势 - 品牌和设计： 可以利用品牌和设计能力来吸引电子商务领域的客户。通过推广其产品的独特设计，它可以将自己与竞争对手区分开来。

Key Weakness - Limited Product Portfolio and Dependence on Outsourcing: The limited product range restricts its market share, and dependence on contract manufacturers can lead to supply - chain issues. These need to be addressed for long - term e - commerce success.
主要弱点 - 产品组合有限和对外包的依赖：有限的产品范围限制了其市场份额，对合同制造商的依赖会导致供应链问题。为了电子商务的长期成功，需要解决这些问题。

Key Opportunity - New Product Segments and E - commerce Growth: Entering new product segments like sports and fitness, home medical, and household products, combined with the growth of e - commerce, can open up new revenue streams.
关键机会 - 新产品细分市场和电子商务增长：进入运动和健身、家庭医疗和家居用品等新产品领域，结合电子商务的增长，可以开辟新的收入来源。

Key Threat - Competition and Changing Consumer Habits: The intense competition from various brands and the shift in consumer preferences towards smartphones and luxury products are major threats that could prevent the company from gaining market share in the e - commerce market.
主要威胁 - 竞争和不断变化的消费者习惯：来自各个品牌的激烈竞争以及消费者偏好对智能手机和奢侈品的转变是可能阻止公司在电子商务市场获得市场份额的主要威胁。

Based on PEST:
基于 PEST：

Key Political - Trade Policies: Trade policies, such as import tax levies, can significantly impact the company's e - commerce operations. Staying updated and adapting to new policies is crucial.
关键的政治贸易政策：贸易政策，如进口税，可以显著影响公司的电子商务运营。保持更新并适应新政策至关重要。

Key Economic - Cost and Purchasing Power: Rising costs due to inflation and labor increases, along with fluctuations in consumer purchasing power, can affect the company's profitability and pricing strategy.
关键经济 - 成本和购买力：通货膨胀和劳动力增加导致的成本上升 ，以及消费者购买力的波动，都会影响公司的盈利能力和定价策略。

Key Social - Changing Preferences: Consumers' changing preferences towards different products and shopping mediums need to be considered when formulating e - commerce and product strategies.
关键的社交 - 不断变化的偏好：在制定电子商务和产品策略时，需要考虑消费者对不同产品和购物媒介不断变化的偏好。

Key Technological - Technological Advancements: Keeping up with technological advancements in the consumer electronics industry and using technology effectively for e - commerce operations is essential.
关键技术 - 技术进步： 跟上消费电子行业的技术进步并有效地利用技术进行电子商务运营至关重要。

3. What are the key areas of employee capability and product concerns that you would like to point out to the CEO for his (her) new e-commerce initiative based on the above analyses?
3. 根据上述分析，您想向首席执行官指出员工能力和产品关注的关键领域，以实施他/她的新电子商务计划？

Employee Capability Concerns:
员工能力问题：

E - commerce Skills: Employees may lack in - depth knowledge of e - commerce operations, such as digital marketing, online customer service, and e - commerce platform management. Training programs should be implemented to ensure they can effectively manage the new e - commerce channels.
电子商务技能：员工可能缺乏对电子商务运营的深入了解，例如数字营销、在线客户服务和电子商务平台管理。应实施培训计划，以确保他们能够有效地管理新的电子商务渠道。

Product Knowledge for New Segments: As the company plans to enter new product segments like sports and fitness, home medical, and household products, employees need to be trained on these new product lines. They should understand the features, benefits, and target markets of these products to effectively market and sell them.
新细分市场的产品知识：由于公司计划进入运动和健身、家庭医疗和家用产品等新产品领域，因此员工需要接受这些新产品线的培训。他们应该了解这些产品的特点、优势和目标市场，以便有效地营销和销售它们。

Supply - Chain Management Skills: Given the company's dependence on contract manufacturers, employees need to have strong supply - chain management skills. This includes managing relationships with manufacturers, ensuring quality control, and handling any disruptions in the supply chain efficiently.
供应链管理技能：鉴于公司对合同制造商的依赖，员工需要具备强大的供应链管理技能。这包括管理与制造商的关系、确保质量控制以及有效处理供应链中的任何中断。

Product Concerns:
产品关注点：

Product Differentiation: In the highly competitive e - commerce market, it is crucial to differentiate products. The new sports and fitness, home medical, and household products need to have unique features to stand out from competitors like Fitbit, Omron, and Braun.
产品差异化：在竞争激烈的电子商务市场中，产品差异化至关重要。新的运动和健身、家庭医疗和家用产品需要具有独特的功能，才能从 Fitbit、Omron 和 Braun 等竞争对手中脱颖而出。

Quality Assurance: With the expansion into new product segments, maintaining product quality is essential. Since the company outsources production, strict quality control measures need to be implemented to ensure that the new products meet the expected standards.
质量保证：随着扩展到新的产品领域，保持产品质量至关重要。由于公司外包生产，因此需要实施严格的质量控制措施，以确保新产品符合预期标准。

Product Compatibility and Integration: If the company plans to offer smart features or connectivity in its new products, ensuring compatibility with existing devices and integration with popular apps and platforms is important. This will enhance the user experience and increase the product's marketability.
产品兼容性和集成：如果公司计划在其新产品中提供智能功能或连接性，那么确保与现有设备的兼容性以及与流行的应用程序和平台的集成非常重要。这将增强用户体验并提高产品的适销性。