ASSIGNMENT
ON

TOYATA’S GOBAL PRODUCTION STRATEGY

Submitted to:

Mr. Md. Zillur Rahman

Course Coordinator

Course Code: MGT-601 Course
Title: Strategic Management & Case Analysis

Department of Business Administration

Sylhet International University, Sylhet

Submitted by:

Shakhor Ranjan Dash
Roll No. 11382
MBA 2-2

Submitting Date : 30.11.2012

Dell Case: Question 1 :: What are the advantages to Dell of having manufacturing sites located where they are? What are the potential disadvantages?

Answer: Dell’s manufacturing sites are in Brazil, China, Malaysia, Ireland, and the U.S. Advantages of these locations are that some of them are low cost (Brazil, China, Malaysia and, relatively, Ireland), they have educated work forces that are highly productive, and they are near large regional markets.

Dell Case: Question 2 :: Why does Dell purchase most of the components that go into its PC from independent suppliers, as opposed to making more itself? (Does does little more than final assembly of components into PC)

Answer: Dell outsources because it enables Dell’s business model to be successful. Dell’s comparative advantage is in pricing, customization and rapid order fulfillment, all advantages gained through supply chain management and logistics. By outsourcing, Dell does not carry risks connected to inventory such as obsolescence, Dell can maintain flexibility in its manufacturing, and Dell has lower coordination costs than if it were vertically integrated, producing its own parts. Outsourcing allows Dell to focus on what it does best.

Dell Case: Question 3 :: What are the consequences for Dell’s cost structure and profitability of replacing inventories with information?

Answer: Dell has been able to achieve the lowest inventory levels in the industry. In 2004, that was only three days