Tuesday - May 10: Jade Yacht Shipbuilding Company

We boarded a ferry and headed to our visit at the  

Jade Yacht Shipbuilding Company

The goal is perfection. Mr. Memphis Han made references to the popular management book Who Moved My Cheese and compared the ship business to jewelry. Memphis said the goal was to make yachts more brilliant. They produce better boats and have a sustainable business. The composition is steel and aluminum alloy which came from an Italian product. Perfection results from hard work and two key items at Jade are planning and preparation. HR and technology has been a key factor in the success. Jade yachts are promoted as Palaces on the Sea.

The company has 5 shipyards and depends on teamwork to operate a fully integrated organization.The other 4 shipyards produce tug boats, ferries, and patrol boats. The company is privately owned. There are some government regulations that limit ownership, so the company has purchased other companies. All of their buildings are painted blue and they pride themselves on hand craftsmanship. The dream began at the bottom as a welder. Today, the owner, now in his 70s, of Jade Yachts is President of the Taiwan Shipbuilding Association shows no sign of slowing down. Mergers and acquisitions have been used to grow the company. In order to become more efficient, careful analysis is conducted and if needed non-workers have been fired in order to run the facilities as lean as possible. The management team is very focused and leads by example. For instance, every day they are at work looking for the next opportunity. They purchase during downtime because Jade Yachts is cash fluent. Investments are made after debt calculations and analysis and purchases are made based on keeping them for the long term.

The average life of a fiberglass boat is 10 years compared to 30 years for the steel/aluminum hull. The material is stronger, safer, difficult to burn than fiberglass. So when making a journey in the Pacific or transatlantic, guests can feel safer on a Jade Yacht. The interior design offers 20% more space than other vessels. Some of the details include Swarovski crystals, marble, and exquisite designs. There are separate quarters for the crew away from the family space.

For Jade Yacht, the team feels they have a social responsibility and provides jobs to over 700 families.Business ethics and morals at Jade include following the customer and calculating the costs. In 2004, Jade entered a joint venture with LVMH to try and market to Hong Kong and Taiwan. The goal is to make Taiwan a  destination spot for travelers. How to get the cheese? From the popular management book has Jade focused on the European and U.S. Yacht Shows. For marketing, they have a limited budget so they maximize their investments and they work hard to enjoy success. To get a lifestyle at one age, and the ability to keep they lifestyle you must provide vision. Marketing for Jade is about throwing out the bait and hooking the customer to create synergy. 

Dirk, from Holland's LVMH company, comes to the island several times a year to oversee quality and production. He has over 20 years in the industry so Jade can take advantage of the partnership and vice-versa. On the way to lunch I asked Dirk how many yachts are produced per year at LVMH and was told 2 or 3, depending on the model produced.The models produced by LVMH cost 3 times more than a Jade Yacht.

Mr. Han (Jade) and Dirk (LVMH)

If you decide this lifestyle suites you, some necessary items are a good chef and crew. The chef is the cement of the boat.Using strategic planning to identify the tools and process is like the cheese running down. In order to become lean, you need a mission and strategic statement to formulate a strategy. Know the individual statistics, players, and your competencies. Assess risk - but use caution.

One key was to think about how to sell the product before you buy it. In order to be successful you need to take business as a sport - use other people's money.We had the opportunity to tour the family yacht. All I can say is it is not like going aboard The 44334 in Bay City back home - no offense Bill! We had to take off our shoes and put on slippers before entering the luxury family yacht. Again, some changes in the policies and procedures for the Coast Guard Auxiliary that may need to be implemented. The main difference I see at all of the businesses we have visited is worker safety issues. In the U.S. we have much stricter occupational safety rules and regulations in place to help protect workers.

We were then treated to one of the best Traditional Taiwan lunches we have had on the trip so far. It was nice to meet his wife and her friend. This was such a great day and I learned once again that business in Taiwan is the same as in the U.S. on many topics.