...University of Hertfordshire Business School MBSP0186 – Organisations and Context Assignment No. 1 Study Case: Solectron |Author |Fabio Oliveira | |Student Number |06132095 | |Hand In Date |13th December 2006 | |Course |MSc Strategic Marketing | |Tutor |Eric Hall | |Word Count |2.504 | Introduction During the last ten years the market environment has been changing constantly. The people have high access to information through the Internet, for instance in Asia-Pacific the Internet access market grew by 18.7% in 2005 to generate total revenues of $30.5 billion. This represents a compound annual growth rate of 24.3% for the five years period spanning 2001-2005 (DataMonitor:2006). The international commercial deregulation offered to countries such as China (China’s economy grew by 10.1% in 2004 and by 10.2% in 2005 – Business Monitor International) the opportunity to explore new markets and to offer labour low costs and high quality products for international markets. On the other hand, and at the same time, the female workers rate is increasing year by year, generating new trends, opportunities...
Words: 2775 - Pages: 12
...Answer 1. Companies outsource production of their products for the following reasons: Lack of technical expertise, or expert labor in certain operations; reduce manufacturing costs due to the availability of cheap labor; make less investments in expensive equipment, staff and IT systems; optimize resource utilization and free up management time from outsourced routine supporting activities to focus on its core competencies; and when domestic manufacturing capacity is reached. Outsourcing is a good strategy for the following situations: Tasks that require specific manufacturing equipment and technical expertise can be outsourced to vendors who specialize in these fields to produce goods faster and of better quality. Outsourcing the supporting processes enables the firm to concentrate on its core business processes. Outsourcing also helps in risk sharing since the outsourced vendor is a specialist who can mitigate risks better. Outsourcing also helps a firm to decrease its operating risk by not completely relying on domestic suppliers; and reduces lead times in case of domestic supply shortage. Sometimes government in the foreign country provides incentives for foreign investment. Companies can sometimes access restricted market to sell their goods only if they purchase certain goods or services from the foreign country. Outsourcing helps a firm to increase its ability to operate 24 hours per day. A firm that sources from abroad may be able to exploit local competitive advantages...
Words: 1724 - Pages: 7
...bring together both components of the organisation into a common vision of the firm and put in place the management process that balances both agendas. According to Boer and Gertsen (2003) this means HP must simultaneously become both ‘singular organic’ and ‘singular mechanistic’. However, Von Stamm (2008) would argue that HP have become a pure ‘reactor’, that is, neither exploring nor exploiting innovation at all, and thus not keeping up with their past-paced external environment. Thus, in Boer and Gertsen’s (2003) model, HP must be at least ‘binary’, and ideally ‘dual’, in order to simultaneously pursue stability and change and to be known as an ‘ambidextrous organisation’ (O’Reilly and Tushman, 2004). HP’s traditional products and processes do not lend themselves to the new demands of the technology market and...
Words: 1462 - Pages: 6
...University of Hertfordshire Business School MBSP0186 – Organisations and Context Assignment No. 1 Study Case: Solectron Author Fabio Oliveira Student Number 06132095 Hand In Date 13th December 2006 Course MSc Strategic Marketing Tutor Eric Hall Word Count 2.504 Introduction During the last ten years the market environment has been changing constantly. The people have high access to information through the Internet, for instance in Asia-Pacific the Internet access market grew by 18.7% in 2005 to generate total revenues of $30.5 billion. This represents a compound annual growth rate of 24.3% for the five years period spanning 2001-2005 (DataMonitor:2006). The international commercial deregulation offered to countries such as China (China’s economy grew by 10.1% in 2004 and by 10.2% in 2005 – Business Monitor International) the opportunity to explore new markets and to offer labour low costs and high quality products for international markets. On the other hand, and at the same time, the female workers rate is increasing year by year, generating new trends, opportunities and demand for new products. The eminent risk of terrorist attacks brought new concerns for governments and companies in their transactions during the manufacturing process. According to Euro Monitor International, just in the USA 45.07% of the total female population was employed in 2005 from 41.99% in 1990. In response and adaptation to the facts...
Words: 2765 - Pages: 12
...Chapter 15 Managing International Information Systems Teaching Objectives Students should be able to answer the following questions: 1. What are the major factors driving the internationalization of business? 2. What strategies are available for developing international business? 3. How can information systems support the various international business strategies? 4. What issues should managers address when developing international information systems? 5. What technical alternatives are available for developing global systems? Key Terms The following alphabetical list identifies the key terms discussed in this chapter. The page number for each key term is provided. |Business driver, 499 |International information systems architecture, 499 | |Cooptation, 508 |Legitimacy, 510 | |Core systems, 506 |Multinational, 504 | |Domestic exporter, 503 |Particularism, 502 | |Franchiser, 504 |Transborder data flow, 502 | |Global culture, 500 |Transnational, 504...
Words: 4440 - Pages: 18
...aim to gain global recognition and sustainable development.” Define. Global alliance: two or more countries joining globally. In February 2 1996, Sprint Corporation, Deutsche Telekom and France Telecom have created a global alliance in telecommunications that offers advance voice and data services to businesses, telephone carriers and consumers around the world. Cross Border Alliance international merger and acquisition with partners. Global Sourcing: describe practice of sourcing from the global market for goods and services across international boundaries. Global sourcing is designed to reduce costs and increase efficiency by buying products and services all over the world. Joint Venture: joint venture is typically a business agreement between two or more businesses for the purpose of a mutually beneficial sales transaction for a product or service. BHPBilliton is a joint venture with a British Company and an Australian company formed to combine the resources exploration competencies of both companies. IJVs: international...
Words: 1740 - Pages: 7
...originally de o eveloped by y Mehrdad Ba M aghai, Step phen Coley, and David d White, esta W ablished a view that companies s that are su t uccessful in the long term have n e growth initi g iatives in th hree stages: Horizon 1, : , the mature slow growt businesses; Horizon t th n 2, 2 the emerging high growth businesses; and g d Horizon 3, t embryon ideas an pilots ofH the nic nd ten found in R&D. Moore asserts in the art n s ticle that h has obs t he served a t tendency of f companies, particularl technolo c ly ogy companies, to ta n ake promising H3 pr rojects and d launch them directly in H1 whe they ofl m nto ere ten are un t nsuccessful under the weight of f near-term fi n inancial pre essures and the need to o conform to the curren business model and c nt d organization norms. The Clarion Group has o nal T n s used the H u H1-2-3 framework with dozens of h f clients over the years, and we hav seen the c ve e phenomenon Moore describes o p n d occasionally. . However, using the H1-2-3 framework as a H H diagnostic, we have also seen ot d a ther trends s more freque m ently – tren nds which impede our r clients’ abili to grow. c ity st es occupied wit existth Mos companie are preo ing businesses; they must learn to p ; t pay more ention to w where they are headed versus d atte chan nneling all o their ene of ergy into wh here they are today. The authors of the H1-2-3 framee f 3 oherent way to talk ab y bout curwork offer a co t rent businesses, new enterprises...
Words: 2827 - Pages: 12
...Stick to the Core—or Go for More? “Cut!” Spike Sanchez stomped toward the stage, his arms waving the music to a stop. Wearing black from head to toe, sporting dark glasses, and sweating under the heat of the lights, he was losing his patience. A highly respected music video director, Sanchez was starting to wonder if taking on this advertising gig was such a great idea. “How many times do I have to tell you to point the logo on the can toward the camera during that move?” On stage was Maygan M, a pop singer whose star had risen in the months since she’d agreed to do this ad. She was a sweet-faced, 18-year-old beauty, dressed in a sequined, midriff-baring halter top, a skintight leopard microskirt, and platform shoes that had already tripped her up twice. She sheltered her eyes from the lights and glared at Sanchez. “Like I can even see the stupid logo,” she whined. “Maybe you could fix it on a computer or something?” “Or maybe you should just do what I say,” Sanchez shot back. “Then we might have some hope of airing this 30-second spot before your 15 minutes of fame are up!” He turned abruptly, strode off the stage, and dropped back into his director’s chair. “Let’s try it again from the top.” Maygan pouted at him for a moment and then flipped her long hair, spun around, and went back to her starting position. Sitting next to Sanchez was Ian Rafferty, cofounder and head of creative services for Advaark, a New York–based advertising agency. “Pretty tough to work with, isn’t...
Words: 5413 - Pages: 22
...Case Analysis: Geox and the Footwear Industry 4410B – Strategic Management – Professor Deane April 30, 2011 Jacob Clelland 250 422 823 EXECUTIVE SUMMARY The Geox group is an Italian footwear company has made its mark through technology innovation in fabrics and materials. It has been operating since the 1990s and became public in 2004. Geox focuses on providing its costomers with high comfort through technological innovation. They focus heavily on research and development in order to produce cutting edge technology that will differentiate their brand within the footwear market. The footwear industry is a mature market with many international competitors. In Europe, the footwear is dominated by many small & medium enterprises, which gives firms more flexibility to cater to specific consumer needs. The basic drivers for consumers buying decisions include demography, disposable income, basic needs, style and new materials. Fashion trends have a major influence on the footwear industry as well as new technology. The industry is very labor intensive and most companies follow a delocalization manufacturing strategy to capture lower labor costs. The primary market segments include Sport/Athletic, Work and Brown. Geox competes mostly in the Brown market but acts as a competitor in the Athletic market because of their focus on technology. Competition is harsher in the Sport/Athletic market as it is the largest market in the footwear industry. Geox should continue to...
Words: 2185 - Pages: 9
...surviving the increasingly competitive mobile device market. Therefore, thorough analysis of feasibility and compacts of JRD should be done, in terms of pros and cons. Due to limited space, most relevant and significant factors will be discussed. For the positive aspect, JRD can benefit Nokia in the following aspects: Effective Cost and Higher Efficiency: By making use of the competitive advantage for the low labor price in China and Taiwan, Nokia can achieve more effective resource allocation: with less investment to obtain higher efficiency, just as mentioned in the HBR case. Foxconn has a series of advantages Nokia can make use of to achieve higher quality and faster speed to market. Focus on Core Competencies: By outsourcing to Foxconn, Nokia will have more resource to target on core competencies. For the cons, JRD might jeopardize Nokia in the following aspects: Overlooked Costs: The reduced cost from labor wage saving is somewhat overemphasized while other tangible or intangible costs are overlooked. For instance, the training for engineers in Foxconn. The process will take time and man power, and the high turnover could make the cost much higher. Other costs include quality inspection, supplier management, custom compliance and so on. Failure to consider these costs can be hazardous, as in Boeing’s case for 787 Dreamliner. Off-shore Supplier Management: proper amount of internal resource should be allocated for off-shore supplier management. Poor communication and lack...
Words: 729 - Pages: 3
...Core competency means that an individual or a company has a strong basis from which to gain additional ability to do so a specific job.it is a fundamental knowledge ability in a specific subject area or skill set.it is something that a firm can do well and it should provide consumer benefit and it is not easy for competitor to imitate though it provides competitive advantage. While cost savings is important to every company, it is no longer the only driving force in an outsourcing decision. Companies today need to take a broader view of outsourcing by isolating their core competencies, and then chipping away at all the functions that do not contribute to them. When a company starts evaluating their activities for outsourcing potential, any products or processes involved in the company’s core competencies should automatically be off-limits. These core competencies are the most important activities to the firm, so they need to stay inside the firm’s control. Rather than outsourcing these core competencies, a company would want to outsource the non-core, but still significant, functions to experts outside the firm. By doing so, skilled employees are freed up to focus on the core operations - the activities that add value to the product or service. Decision to form relationship: When the decision relates to using an external provider of product or service the question arises whether or not the provider’s service will be needed. If firm has the ability to have a core competency...
Words: 498 - Pages: 2
...difficulties of access to city centers and night delivery and shop security the physical distribution network was kept retained. The general network expansion of outlets through closure of 126 shops and opening of 216 which took the total number of shops from 269 to 359 helped this decision, because this was also a factor to reduced distribution costs. According to the statistics Roger Paffard succeeded in this, during his time as chief executive the number of own shops has increased and the number of franchisees has declined in addition both the profit after tax and the operating profit has been increased in his time as chief executive In 1998 the senior management’s view on the corporation was that it was a market-led, retail-driven business selling into a market that could be defined in more than one way. It could be seen as a gift market, where boxed chocolates competed with a wide range of products, promoted by high-specialist retailers such as The Body Shop and KnickerBox. In this market Thorntons also had to...
Words: 2421 - Pages: 10
...the availability of substitute products. Dell need to make sure that the price offered to the market is affordable based on the quality it was set, so that it can eliminate the price that offered by its competitors and maintained the demand from the customers. The second force is the threat of new competitors or entrants in the market. If the firms in an industry are highly profitable, the industry becomes a magnet to new entrants. So, Dell has to ensure that it can keep the number of entrants low by offering the quality products and the best service to the customers. It can be seen when Dell shifted its sales strategy rather than selling exclusively direct to decide to transition a hybrid model from only targeting to the business to targeting business, consumers and international markets as it sells a portion of its product line through retailers like Best Buy, Staples and Walmart. Besides that, we can do an analysis based on rivalry among existing firms...
Words: 1514 - Pages: 7
...Natanael Moreno Operations Management Professor: Richard Young September 12th, 2012 Eldora According to this case study, Eldora was considered a U.S. leading bicycle maker. One of the strategies that helped to this success was the fact that Eldora was a “home made” manufacturing. What this mean is that Eldora kept its productions centers in the same campus as its corporate offices; which were located in Boulder, Colorado. This “home made” strategy helped to the ultimately goal and of course growth of the company. Moreover, this caused improvements among the different sections of the company as well. This success was so efficient that Eldora’s sales and earnings had wonderful record levels, which made its operations vice president Sean Andrews believed that the strengths of the company was tied with their “reverse engineering” as well as its logistical and production capabilities. In other words Eldora’s products were of high quality. What so ever, the problem began when other companies started making great money by being able to produce bike products, and bikes in a very cheap cost. The products were about the same quality, but the cost of making the bicycles were in a greatly low cost in contrast to Eldora’s. This is why I totally believe that the strategic objective that Eldora should serve is to move their productions departments to where the labor and production is greatly low. There are some great opportunities on taking this strategic objective, such as: ...
Words: 966 - Pages: 4
...telecommunication, healthcare and real estates. It was Dejouany’s vision, which became corporate vision a d guiding force for the CGE’s aggressive diversification. Dejouany used cash flows from core businesses of water supply, water treatment and waste management, to finance the new ventures. However due to recession and economic downturn by mid 90’s CGE started to feel the pressure and hence came a new CEO Jean-Marie Messier. Messier redefined CGE’s vision to return to its core competencies and these were utilities (water, waste, energy and transport) and communication (telecommunications and multimedia) and Constructions and property while more emphasis on former two. Messier started to consolidate CGE’s 2714 subsidiaries into centralized controlled line of businesses. The important and critical to CGE’s corporate vision was to expand his horizontal boundaries into different businesses like Telecommunications and then vertically integrate with other companies in that business to become a major player. Messier established a corporates office and policies for capital allocation along with resource management and incentive system. In 1998 Messier changed the CGE’s name to Vivendi and reviewed the Vivendi’s corporate vision to become a major player in communications and media business through their integration with Havas and Canal plus. As per their vision Vivendi acquired Seagram in 2000 and become a global player in media and communications industry, along with the acquisition...
Words: 854 - Pages: 4
