1.What were LEGO’s main expectations and learnings from the relationship with the Flextronics? Expectations: a. Saving cost by outsourcing to low-cost countries: Prior to outsourcing‚ LEGO owned and operated production plants mainly in relatively high labor-cost countries‚ such as the United States‚ Switzerland and the South Korea. The main reason for this is that LEGO built plants close to its main markets to save transportation cost. But LEGO finally realized that the reduced labor cost in some
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Group: An Outsourcing Journey - Assignment #5 Question: Why do you think Lego’s outsourcing “failed”? (What factors explain the short-lived outsourcing relationship between Lego and Flextronics?) To answer this question‚ I want to state the fact that short-lived relationship between Lego and Flextronics was not a total failure. And to begin with‚ I want to list some of things that Lego learned through this outsourcing. From this list‚ we can also see why their relationship was short-lived
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Case Write-Up: LEGO Group-An Outsourcing Journey Q1 LEGO’s main expectations and learnings from the relationship with Flextronics LEGO’s main expectation was to optimize its global supply chain by saving cost and reducing production complexity from the cooperation with Flextronics. However‚ the contract between those two lasted for only 3 years. In the end‚ LEGO re-took control of plants in Czech Republic‚ Hungary and opened a new site in Mexico Lessens LEGO received from this unsuccessful
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What were LEGOs main expectations and learnings from the relationship with Flextronics. The Legos main expectations were: A 1. The rapid cost cuttings so as to overcome the largest internal financial crisis in the history of company. 2. The problems of product development and distribution would be sorted out. 3. To reduce the production complexity by attracting large sub contractors. However‚ the deal was not successful and Lego learnt that 1. Outsourced facilities are always not effective
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MANAGEMENT INFORMATION SYSTEMS IMT - MIS (Assignment Questions) Institute of Management Technology Centre for Distance Learning Ghaziabad 2 IMT CENTRE FOR DISTANCE LEARNING GHAZIABAD Distance Learning Programme MANAGEMENT INFORMATION SYSTEMS Notes: a. Write answers in your own words as far as possible and refrain from copying from text books/handouts. b. All answers should be of 200 words. c. Write on one side of the paper. d. Answers of Assignments I‚ II‚ III and IV (Case Study)
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Microsoft Project Summer 2006 BUS 597A INTRODUCTION In 1975‚ Bill Gates and Paul Allen created a company called Microsoft. More than thirty years later‚ Microsoft is a leader in the field of computer programming. Gates and Allen both had big plans for their company and came up with different ways of managing people and products in order to create possibly the most effective and versatile workforce of any corporation in existence. To study Microsoft’s way of doing business is to look at the
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Gafurov Nodirbek Batch#: B0900377 Table of Contents Executive Summary 3 Introduction 4 The Role of Supply Chain Management 5 Flextronics Logistics Management 7 Reverse Logistics 9 Flextronics in Channel Management 10 References: 12 Executive Summary This assignment demonstrates the most key business areas of the given‚ Flextronics International Ltd. It analyzes the core businesses of the company as logistics and supply chain that is subjective for the development and business
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1. How has Altera modified its strategy? Why? Altera learned a hard lesson in inventory management after losing $115 million worth of inventory in the 2000-2001 timeframe. Altera produced its programmable logic devices and stocked them in warehouses waiting for customer demands. Their thought was to provide a cost advantage to their customers by having readily available stocks. Altera also leaned forward to help customers by building new products from specs. This push strategy backfired‚
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advantages and disadvantages of the new strategy? c) How do you anticipate Altera’s customers will react to this new strategy? What are advantages and disadvantages for Altera’s customers? d) What information does Flextronics have that its clients do not? Why? How can Flextronics leverage this information? e) How does IBM manage its supplier in order to make it pull strategy more effective? 1. (40%) Bullwhip a) (10%) Why bullwhip occurs in a supply chain? b) (15%) Does that contradict with
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the last step of the process of restructuring Lego’s supply chain‚ the Group tried to close some of its’ own factories in Korea and Switzerland‚ upgrade the procurement process and outsource 80 percent of the production. Prior to outsourcing to Flextronics‚ production plants were located in high-cost countries including Denmark and Switzerland. Apart from the famous Brick‚ the company entered into other industries including computer games‚ clothing‚ licensed products and television. The product diversification
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