Inventec Corporation Case Study 1. Despite its growth and size, why is Inventec not very profitable? Inventec Corporation, one of the leading Original Design Manufactures (ODM), specializes in designing and manufacturing electronic devices. Although the firm had a rapid growth in market share and a huge production scale, the company did not perform well in terms of profitability. There are several factors that may lead to lower profit margins .The great amount of rivalry among existing firms
Words: 873 - Pages: 4
Q1: Despite its growth and size, why is Inventec not very profitable? Ans: Applying Porter’s 5 Forces it is evident that the Taiwanese ODM industry is highly competitive and hence it is hard for any ODM to gain high profits. Following are a few reasons why Inventec is not able to earn a handsome profit: * There is intense competition among ODM vendors such as Compal, Quanta, Mitac etc. All these firms manufacture similar products and hence there is very little differentiation. * Excessive
Words: 766 - Pages: 4
1. Inventec was deeply committed towards increasing its market share in the mobile phone segment, but had to contend with a high channel development and alliance cost. Lower levels of brand awareness, and missing consumer information compounded Inventec’s problems of enhancing sales volume and market coverage. From analysis of accounting information: * Comparing with the others leading Taiwan Original Design Manufacturers in 2005, Inventec has a low net income figure of 59m while three of them
Words: 577 - Pages: 3
analysis of relevant elements in the task environment such as: (1) Competitors (2) Suppliers (3) Regulators (4) Strategic Partners (5) Labor and (6) Customers. 4. Discuss how a development in a corporation’s societal environment can affect the corporation through its task environment. 5. How can managers identify external strategic factors? a. Environmental uncertainty b. Issues priority matrix c. New entrants d. Entry barriers e. Rivalry f. Substitute products g. Bargaining power
Words: 269 - Pages: 2
Unit VIII Article Critique Columbia Southern University DBA 7553 1. Introduction of the Article This article is found in the Directors and Boards magazine. It is written by Donald P. Delves who “is president of the Delves Group, a compensation and corporate governance consulting firm that advises boards of directors” (Delves, 2012). The article is titled “What about everyone else? The problem may not be that executives are paid too much, but that employees are paid too little
Words: 585 - Pages: 3
corporate strategy? Starbuck is a known corporation local and international for their freshly brewed coffee and other products that are offered. Social responsibility helps the company image, to care about the community and the environment, these are positive stand points that define the company self portrait. It's important how you look on the outside, in the end it's all about sales. As mention in the text “people first and profit last” once a corporation can fulfill its duties that benefit the
Words: 334 - Pages: 2
In order to maximize a firms [sp] profit potential, a corporation should match its greatest strengths, with external factors to create opportunities. When assessing opportunities to acquire a new business unit, firms should only seek to acquire units that have strengths that match, enhance or can be combined with the firms established strengths. The article [which? there is no list of references -- you’re supposed to discuss an issue from class before discussing the article] is about how firms are
Words: 689 - Pages: 3
Introduction and Course Philosophy: This course covers accounting theory and practice for business combinations, segment and interim reporting, foreign exchange and partnerships. Business combinations cover most forms of mergers and acquisitions, which are common among business entities. Segment reporting is how management disaggregates financial results into meaningful business performance. Foreign exchange covers the basics of currency transactions and translation including hedging, which are
Words: 360 - Pages: 2
different forms of business and their advantages and disadvantages. Following are the different type of business formed to conduct work: 1. Sole proprietorship. 2. Partnership. 3. Limited liability partnership. 4. Limited liability company. 5. S corporation. 6. Franchise. 7. Corporate. 1. Sole proprietorship, The sole proprietorship is a type of business entity that is owned and run by one individual. All the decisions of the business are made by that individual and there is no legal distinction
Words: 1135 - Pages: 5
Anthony and Karen were partners doing business as the Petite Garment Company. Leroy owned a dye plant that did much of the processing for the company. Anthony and Karen decided to offer Leroy an interest in their company, in consideration for which Leroy would contribute his dye plant to the partnership. Leroy accepted the offer and was duly admitted as a partner. At the time he was admitted as a partner, Leroy did no know that the partnership was on the verge of insolvency. About three months after
Words: 312 - Pages: 2
