JOSIAH SAMUEL O.

ESPAÑA Date: October 3, 2020

BSA – 2A2 Prof. Raisa Marizka R. Ver

MIDTERM EXAM EQUIVALENT

Analysis of Malcom Baldrige Recipients

Grading Criteria
APPLICATION 20PTS
RESPONSIBILITY 10pts

Objective: Paper Analysis has significant importance/authenticity to the field of

business management that creates an imperative contribution to total quality
management.

I. Company Profile (1-2 paragraphs only)

STMicroelectronics, Inc., formerly SGS-Thomson Microelectronics, is a global
electronics and semiconductor manufacturing firm since 1987 that brings energy-
efficient and intelligent products which galvanize the positive input into people's lives. It
is well-known for its shortened name “ST” and considered as Europe's leading
semiconductor chip maker based on returns. Their people comprise 67% for the
manufacturing department, 17% for Research and Development, and 16% for Marketing
& General services worldwide.

ST’s main headquarter is situated in Geneva, Switzerland.

However, in the Philippines, its largest branch is located at No.
9, Mountain Drive, LISP II, Brgy. Lamesa, Calamba City,
Laguna. With at least 2000 employees and staffs, ST
continues to enable smarter driving and keener industrial unit,
cities and households. Their regular working days are from Mondays to Fridays.
Moreover, ST provides a number of benefits to its regular employees – Medical benefit,
Miscellaneous stipend, Education support, Loans, Dental grant, Sports benefit (e.g.
Gym), Parking allowance, among others.

Prepared by: RMRV 2018

 II. Criteria for Performance Achieved
a. Delivery of ever-improving value to customers, resulting in
improved marketplace success
STMicroelectronics, Inc. continues to address the sustainability and resource
management challenges their customers are facing, thus, giving values to clients. With
46,000 designers and creators of semiconductor equipment, devices, and resolutions,
they uphold to provide assistance and render service to their 100,000 customers.
Actually, ST serves well-known multinational companies that belong in their Top 10 list
of customers, namely Apple, Bosch, Ciena, Continental, HP, Huawei, Mobileye,
Samsung, Seagate, and Tesla.

ST values sustainability in the delivery of service to their customers. All these

developments call for a more sustainable world. This is also what ST’s technology is
made for, and this is their objective that, for more than 25 years, sustainability at ST
should be an essential part of everything they do. Moreover, it guides the way they
handle business and relationships with their clients, partners, and staffs. Furthermore, it
paves the way for innovation and development without losing focus to their three core
values: integrity, people and excellence.

b. Improvement of overall company performance and capabilities

For consistent quality management and continuous innovation, ST invests largely in
Research and Development (R&D) which is about 16% of their total revenue every
single year. With this, they guaranteed that their manufacturing sites around the world
are knowledgeable enough with all phases of their products’ supply chain, to assure
clients the value, flexibility, and supply security they need.

STMicroelectronics, Inc. provides innovation and evolution of solutions and technology.

To be specific, ST is behind the reshaping of commerce and societies – these smarter
mobility solutions like electric vehicles, efficient power management through solar
energy, and 5G Internet connectivity

Furthermore, they engage more with a community of trusted international companies

offering products and services that complement ST solutions. Their focus ranges from
employees, customers, suppliers, up to their partners to maintain a sustainable culture
for quality excellence and result-driven improvement programs.

Prepared by: RMRV 2018

 c. Organizational and personal learning
ST inculcates quality as a key business enabler. That is to say, they employ and
implement quality planning and assurance for the growth of their business. Through
trainings and education, they make sure that the right resources are allocated, and the
system, not disrupted. All things considered, they are able to improve their
engagements and partnerships, encourage employee and customer participation, and
reduce production impairment.

Their vision for quality is to elevate the business to the highest level of quality as an
asset for their clients. Moreover, the organization aims to achieve their mission to
ensure that their products and solutions meet the highest quality and reliability
requirements of the target markets.

III. Hierarchal Set of Categories, Items and Areas addressed

by the recipient (1-2 paragraphs per criteria)
CRITERIA STRATEGIES, ACTIVITIES, PROCESS, SYSTEMS IMPEMENTED

Leadership The organization’s senior leaders conduct the business responsibly to

create value for stakeholders. Their people are driven by the values
that have been living in themselves – People, Integrity and Excellence.

In addition, STMicroelectronics, Inc. is currently under the highest

leadership of Jean-Marc Chery, President and CEO of the company.
He has to chair and give directions to the Executive Committee
composed of 7 presidents in different departments. Chery navigates
the organization toward improvement by manipulating views,
techniques, and principles. As the highest-governing person in
cooperation with the board, he manages methods of doing things in
accord to better, more efficient, more effective, and more innate
strategies.

ST is environment-conscious and nature-friendly. The organization

deploys programs reducing the risks of greenhouse gas emissions
from all their operations. Furthermore, they minimize environmental,
health and safety risks akin to toxic substances and virulent chemicals
used in production by handling precautionary policies.

Prepared by: RMRV 2018

Strategic STMicroelectronics, Inc. addresses four end markets and each has a

Planning unique set of strategies. In (1) automotive, their edge is the car
electrification and car digitalization; (2) industrial, embedded
processing, and growth in analog and sensors; (3) personal
electronics, high-volume smartphone applications, and; (4) computing,
cellular and satellite communication.

The corporation achieves its strategic objectives by consistently

enabling strategic trends focused on customers. ST’s people practice
transparency, reliability and comparability to achieve its long-term goal
of sustainability.

Moreover, ST encourages employee participation to achieve quality

management. They spend billions of dollars in Research and
Development (R&D) to ensure that every single person in their vicinity
is intellectually competent.
Customer and ST has been serving more than a hundred thousand customers
Market Focus worldwide and the count consists of great corporations such as Apple,
Samsung, Huawei, and the like. To each client, be it individual or
corporate, they provide standard process, reporting and follow-up in
sales and marketing globally, to assure that all customers are served
equitably.

Furthermore, ST partners with over 80 sales offices in 35 countries.

They lead their market in terms of the quality of products, without
severe quality instances, while gathering the most rigorous client
expectations.

The organization has created responsible and effective business

operations giving them more than 100,000 global clients. They also
sustain good financial performance giving them almost $10 billion of
net sales. With this, they are able to sustain market focus through
customer innovation and development.
Measurement, ST offers strategic independence and product differentiation to clients
Analysis, and to select the best possible resources and supplier information through

Prepared by: RMRV 2018

Knowledge Research and Development. Actually, 17% of the workforce comprises

Management R&D employees. With this, they are able to identify advanced
manufacturing technology platforms, worldwide design resources, and
accurate supply chain.

In addition, the business creates models and illustrative simulations to

determine the highest quality and reliability requirements of clients for a
longstanding commitment.
Human Currently, STMicroelectronics, Inc. has more than 46,000 employees in

Resource 105 nationalities of which 34% are women and 66% are men. They
continuously develop skillful people in an inclusive and safe workplace
Focus
– providing an average of 50 hours training and education per
employee. Moreover, 77% of its employee recommended ST as a
great place to work.

To utilize and strengthen their potentials, leaders, and the board

provided continuous training and education, and Research and
Development which comprises investments of 16% of total annual
revenue.

The organization’s work systems start with the purchase of raw

materials, equipment, energy, gas, chemicals and services from many
suppliers and subcontractors. Secondly, new products are created in a
multi-step process, including architecture conception, electrical layout,
electrical and logic simulation, among others to etch the design into
silicon. Finally, the front-end, electrical water sorting, and bank-end
manufacturing come before offering a large portfolio of products
suitable for the wide range of applications addressed by the clients.
Process The process management of STMicroelectronics, Inc. is systematic

Management and transformational. It all starts with the highest-governing person,

going down to the department presidents, up until the employees. Their
sustainable technology program aims to develop responsible products
which improve their social and environmental footprint at every stage of
product life, and have the greatest positive impact on the Earth and its
people in the end application.

Prepared by: RMRV 2018

 Raw materials used shall be in compliance with their own
environmental protocols. Production of eco-design devices, electronics
and solutions shall be power-efficient and low-carbon. During the
manufacturing process, ST shall instill their social and environmental
programs in alignment with their Code of Conduct. A set of their
finished products is then tested for responsible application to ensure
planet-friendliness and human-welfare. Finally, the process ends with
product compliance through material declaration and patent from
ECOPACK to be specific.
Business Customer and employee satisfaction

Result 77% of ST’s total workforce recommended the business as a great

place to work and spend pre-retirement. The business ensures the
health and safety of its people through management systems and
certification.

Product & service performance

ST had 21% less carbon-emission versus 2016. Also, 62% of their new
products were classified as responsible products. The business has
18000 active patents which are expected to balloon new product lines
because of 16% investment to R&D from total revenues. In addition,
94% of their production wastes and scraps can be reused, recovered
and recycled; 41% of water can be reused.

Governance & social responsibility

There were more than 97 000 medical acts conducted to communities.
Furthermore, 177 supplier responsibilities have audited since 2015.
Also, ST donated $1.8 million cash to local communities. Their teams
shared knowledge and values with more than 110, 000 beneficiaries in
local communities. Moreover, ST Foundation trained more than
720,000 people on computer basics since 2003.

Competitive edge
100% of STMicroelectronics’ products are conflict-mineral free.
Moreover, ST was already regarded as the largest semiconductor

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 manufacturing firm globally. It has 11 main manufacturing sites in 7
different countries. Furthermore, the business has $12 billion total
assets, and almost $10 billion net sales.

IV. Narrative Report (1-2 Paragraph-Conclusion)

STMicroelectronics, Inc., in general, has been successful in their mission to ensure that
their products meet the highest quality and reliability needs of the target markets around
the world. The organization also achieved its quality visions to sustain culture of
excellence, to focus on customers, and to drive improvement programs. Their success
is already given from the fact that most of its employees were satisfied with the service
returns, and customers have been increasing dramatically.

Not that ST has been commendable internally, but more of a set of aspects – financial,
intellectual, natural and social. The business is financially stable because it has
sustained a good financial standing through complementing assets and investments to
reap higher returns. ST is also known for its generosity towards its workforce by giving
them plenty of benefits. For me, ST is intellectually competent for it spends a
generous percentage of its investments for trainings, education and Research and
Development (R&D). The business cares much to the environment to the point that
they can intelligently craft technologies minimizing CO2 emissions, that’s why I regard
them naturally successful. Lastly, ST has already developed good relationships with
the local communities by giving opportunities to train and work at the corporation, thus,
proving that the business is socially effective.

To sum all things up, STMicroelectronics, Inc., in all aspects, is globally competitive and
can proceed to the expansion of their scope and scale. They have been responsible for
the direction of their program results and objectives. That is to say, the economic,
environmental, intellectual and social performances of ST are all sustainable and
effective.

Prepared by: RMRV 2018