- Introduction
LSI Corporation is an international electronics company. The company deals with designing software and semiconductors used for acceleration of storage and networking in datacenters. The products and services are also useful for mobile networks and client computing. The company’s headquarters is situated at San Jose – California. The company was founded in the year 1981 by:
- Bill O’Meara,
- Rob Walker and
- Mitchell Bohn.
- Top executives of LSI
The first chief executive officer to serve the company was Wilfred Corrigan. Currently, under the stewardship of the company’s president in office Mr. Abhi Talwalkar and the corporate marketing manager and Senior Vice president Jeff Richardson, the company has made a major mark in the development to serving not only in America but also China, Japan, India, the Middle East and some parts of Africa. Other key members of staff and board of directors include:
- Gregorio Reyes, as the board’s chairman
- Bryon Look – chief financial officer and executive vice president.
- Gregory L. Huff as the chief technology officer
- Independent directors Charles A. Haggerty, Richard S. Hill and John H. F. Miner.
These and among other junior staff officers work collectively towards the realization of the company’s goals of exploring further markets for the high-performance storage gadgets and products of the company.
- LSI’s overview
The company has acquired stakes in various partnerships. This has been instrumental towards the development and success of LSI Corporation. For example, during the year 2012, the company acquired SandForce limited, a flash memory producer and controller company. This acquisition enabled SLI venture further to produce the Nytro product in April that year. Furthermore, the company has been able to produce the new Data Bolt technology that is being introduced in line with Nytro products and others such as the mini SAS HD connector.
- Market in which LSI operates
Earlier in 2005 before the current CEO joined the company from Intel Corporation, the company had made an attempt in implementing programs of divestitures acquisitions. Immediately after the appointment, the company developed a strategic plan to explore other ventures in the best possible manner that will enable it grow by double digits. In this concern, semiconductor designs branded as ‘ON semiconductor’ were manufactured at the Silicon Oasis in Dubai. This followed other major productions and acquisition such as the NetApp, sale of Enenio division in 2011 and the ONStor Inc in 2009.
- LSI’s recent news and headlines
The recent news and headlines for the corporation, especially in the last five months include:
- SLI investor sues the board of a 6.6 Billion dollar Avago’s takeover deal. This news was released on the fourteenth day of January 2014.
- LSI company Opens in Paris: Brown Rudnick Adds,
- S&P 500 Halts 4-day data before the Fed meeting.
There were also headlines of Stock advance on manufacturing growth. This was initiated and influenced by the oil gains with silver. Also on the Bloomberg News, it was reported that Avago is on the advanced stages to purchase LSI for approximately 6.6 Billion dollars in order to gain storage chips.
- LSI Corporation’s performance
As discussed earlier, LSI’s staff major task is to see out the corporation reaches realizes its objectives both in the short and long run. Therefore, the company has employed various performance influencers to undertaking its obligation in the daily routine activities. Different performance strategies have been identified and utilized by LSI Corporation. Among them include:
- The utilization of the Buffet Assessment
- Organizational design
- Revenue versus profit assessment method and
- The use of Cash management in the company’s entire undertakings.
A detailed but brief description of how the corporation applies the mentioned method is as below.
- Organizational design analysis
This is a tool employed to improve the efficiency of any organization. It is a technique of designing and restructuring the various organs of the organization to influence productivity and increase output. The technique requires a consideration of both internal and external factors that would in one way, or another affect the operations of the corporation. LSI Corporations has successfully designed its key areas of operation to accommodate the various aspects and pillars that constitute the organization.
Even though activities are carried out in a collective manner, a proper definite line of work has been defined to ensure that each and every department does its activities independently and in an effective manner. Through the use of different models LSI has taken organizational analysis through the assessment of the current corporations’ state and that of the past. Various alterations have been made to accommodate the new resolutions. For example:
- LSI’s theoretical connections have been recently employed to facilitate a good understanding between the different departments to enhance the functionality.
- In greater instances, the rational and socio-technical models have been applied and have proved instrumental towards the success of the corporation.
- Cash management
Cash management is another performance technique that when appropriately utilized by the company is becomes critical to enhancing output. It involves a process of collecting and managing both short and long-term cash investments. LSI has adopted various principles of cash management to avoid insolvency. The most techniques of this strategy utilized by the corporation include:
- Reducing day by day account receivables
- Selecting only the appropriate short term investments and increasing collection rates.
Also the corporation has been able to increase days’ cash on hand in a daily routine. This has improved the overall financial profitability of the corporation. The unique personnel and skill of the LSI’s staff have proved vital in managing cash in a wise manner. They have been able to manage the less access of credit and keep on a significant amount of upfront costs that have been instrumental in dealing with unexpected costs and expenses.
- Buffet Assessment technique
Buffet assessment technique has is an essential way of enhancing the general performance of an organization. The technique is a value investing approach that enables a company explores other resources to achieve success into another level. The strategy utilizes various aspects of efficient market hypothesis to favor quality stocks that are always undervalued. The strategy has a less recognition to the forces of demand and supply.
Although this could be risky in some times, it is a better strategy for the realization of a long-term objective. This is because it gives a backup for all the company’s chest in investment and returns could not always be achieved in the short-run. Evidently, LSI Corporation has effectively applied this strategy. This is because the corporation has given its concentrations of the often termed as undervalues stocks such as a venture in flash storage discs. This has been implemented especially since the arrival of the current corporation’s president.
- Revenue vs. Profit Growth
Revenue, also known as turnover is the income received by the company from the normal business activities. Most of the events under this technique include the selling of services and goods a company produces. On the other hand profit growth is the increase of marginal profit for a consecutive period of business years.
LSI Corporation has observed the revenue versus profit growth in the most appropriate way to ensure that its functionality is efficiently and into another level. The company has maximized the total possibilities of collecting greater pool of revenues by venturing into sub-electronics that very necessary in computer and accessories to other devises. The corporations’ revenue base has been higher since the applications of this strategy in the early days of the current staff in office. In terms of profit growth, the success of greater revenue collections from selling of the corporation’s products has made a greater impact in the development of successive profit margins year by year since 2005. Therefore, LSI Corporation has utilized the revenue vs. profit growth effectively to enhance the corporation’s performance.
The use of the above strategies in performance of LSI Corporation has enabled it reach an excellent performance. Year in, year out turnovers have greatly increased to surpass even the expectations of many observers. The techniques have been integrated with the acquisitions of various states in other ventures as discussed above to influence this great achievement.
Alongside Intel Corporation, LSI has grown to be an international force in the world of computers and accessories. In my opinion, the corporation’s products have gained recognition across the global market just as Intel Corporations products due to proper management and staffs’ focus of development. For the recent three years and counting, the company’s revenue has been phenomenal to about 90% consecutive growth. This compares fairly to the global GDP growth especially in revenues from electronic and accessories sales.
- LSI’s revenue increase
The corporation’s asset base has also risen significantly. According to the current news releases of LSI Corporation, asset figures have gone up to about 30% increase for the last three years. The value of liabilities has lessened significantly, as well. This has enabled the corporation stand strong in terms of stability. This is because of its abilities to attract more revenues that have raised profit figures to almost double digits. The items and strategies employed by LSI Corporation as discussed have been the benchmark for all the developments in growth of the company. But still, there is always some margin and room for more improvement.
- Suggestions
Further improvements would be realized on the event that the corporation starts to treat all mentioned highest income drivers to align with the development pace. In this scenario, all people associated with LSI Corporation will be involved either directly or indirectly in the development. For instance, employees will be entitled to pull together harder than before and give their best.
The aspects of the ideal products that have registered higher revenue would be produced in double numbers to match the level as expected in the sales. Furthermore, stakeholders of LSI Corporation will be expected offer much contribution and be available for serving the company anytime when the need arises. Upon application of such strategies in integration with the explained above will enable LSI Corporation grow into even greater heights
