Course title: Creativity and Business Innovation
Instructor: Professor Ali Farhoomand
Case study: Managing Creativity at Shanghai Tang
Student Name: Tse Ka Cheuk Derek
University ID: 3035066338
Submission date: 16th September, 2013
Founded in Hong Kong, named as one of a very famous TV Drama, Shanghai Tang is a Chinese brand who takes the lead to sell luxury apparels and accessories, targeting the middle to high income group. Recent reports reveal that Shanghai Tang is having problem in being creative and on the other hand, serving the needs of the market. Conflicts are bred between designers and management levels, both are firm on their stance, ...view middle of the document...
Small scale of the line is preferred in this preliminary stage and reviews should be conducted after the launch of the new line of products.
While for the limits of Chinese manufacturers, Shanghai Tang can establish partnership with trustworthy and experienced manufacturer. By injecting capitals and utilizing the manufacturers’ expertise, new machines can be reinforced to provide refinements for the clothing and accessories.
Last but not least, an implementation plan will show you how these recommendations are going to run year by year. This gives a blueprint of how should Shanghai Tang executives respond to remedy the current situation.
As a pioneer in selling luxury Chinese-branded apparels, Shanghai Tang consistently provides surprises and delightful experiences to their customers. Despite its unique and defining business nature, some problems seem act as major hindrances for the company’s growth and expansion.
The whole report is clearly structured into four parts. The first part addresses major issues (problems) found out in the company, breaking the issues into tiny segments for the ease of further analysis.
The second part provides recommendation to the company. Rationale of choosing this solution will be stated and a thorough implementation plan will be proposed as well.
Finally, a conclusion will be drawn considering the predicted future of the company.
Issue 1: Balance between creativity and business sense
Designers care about the style, color and the silhouettes of the products they designed. They tend to view and generate products in an artistic sense that they feel comfortable with. In contrast, management levels pay attention on profit maximization, focusing on products that suit customers’ taste. It is clearly known that both of their viewpoints served as core values in the company but it is always difficult to strike a balance between them. Recent committee meeting between designers and managers even create tensions and soon escalated to vigorous debates. No matter it is about the imbalance between creativity and business or the deteriorated relations among employees, both create threats for the company’s future.
Suggestion 1.1: Promote or hire a creative director
It is noticed that conflicts breed easily between designers and managers when discussing about the approval of products. Designers pay huge amount of effort drafting a product design, thinking this would be the best work of art. Nevertheless, it is always difficult for them to persuade retailed people to accept products that are way too artistic to them.
What is missing in the former committee meeting is a person who can assess the viewpoints of both sides and make a reasonable and rational decision. Shanghai Tang should consider hire or promote a creative director to take up this role, a head of both the retailing and the designing team. The director should also be able to resolve conflicts once atmosphere are intensified.