What information does Flextronics have that its clients do not? Why? How can Flextronics leverage? Flextronics is one of the worlds largest EMS companies‚ with 12 billion in revenues‚ had an on usually good vantage point of the inventory surplus. The Singapore – based company makes everything from printed circuit boards to cell phones for a variety of high-tech clients‚ including Cisco‚ Lucent‚ Nortel‚ and Ericsson.” The telecom guys thought‚ ‘We can do no wrong‚” says Dan Pleshko‚ vice president
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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
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fiscal 2003‚ which ended in December. Hon Hai’s control of expenses is as obsessive as its control of data‚ something Lehman expert Emily Chang acknowledged on a visit to EMS offices in China a year ago. The "pleasant lodging and workplaces" of Flextronics’ expats stood out pointedly from the housing of Hon Hai’s directors. "Indeed‚ even the nearby administrator’s workplaces had uncovered solid floors‚" she says. "This organization is truly thrifty." Hon Hai can depend on the 30 percent and higher
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The LEGO Group: | An Outsourcing Journey | | | 8/2/2012 | Introduction 2004 began an especially difficult period for The LEGO Group‚ which entered into a financial crisis resulting in a deficit of 1.8 billion DKK ($294.9MM USD). The internal turmoil lasted through 2009 as the leading toy manufacturer‚ famous for the signature LEGO brick‚ nearly went bankrupt. This experience was a first-hand lesson in the negative effects of not having a stable and organized supply chain design.
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Play station 3 External Environment & Industry Analysis Porter’s 5 forces overall‚ the industry isunattractive for new entrants‚ and themain concerns are competitors andthe increasing number of substitutes [pic] [pic] Internal Environment Analysis This involves assessing the resources and capabilities of the firm in terms of strategic importance and relative strength‚ specific to PlayStation3 (see Appendix A.3 and A.4) (Grant‚2010). The following graph summarises this:
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The Great Inventory Correction Cole Stripling ------------------------------------------------- November 8‚ 2012 ------------------------------------------------- Summary Flood of the century or not‚ tech companies are taking steps to limit their exposure to the next traumatic event. Some are revising their inventory models; others are implementing supply chain software and setting up Web supplier hubs. Everyone wants tighter collaboration with suppliers and timelier information from customers
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good‚ which means play well. Since thousand 1960‚ the LEGO has release thousand of set variety of themes. An Adventure journey through five years from 2004 to 2009 has taught LEGO Group the fifth largest toys company who has signed contract with Flextronics. In 2004‚ radical changes took place within LEGO‚ organization as consequence of its internal crisis that drew the company near bankruptcy. One of the causes for dropping the revenue is about loosing of confidence of its core product‚ LEGO bricks
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inventory GSCM – Group 3 3 Case summary II ALTERA • California-based chipmaker (Programmable Logic Devices) • Supply to a giant Taiwanese company • Chute in revenue due to declining customer demand • Write-down 115 mio. worth of inventory FLEXTRONICS • One of world’s largest EMS (electronics manufacturing services) • Makes everything : from printed circuit boards to cell phone • Customers: Cisco‚ Lucent‚ Ericsson • Inventory growth 2000: from 470 mio. to 1.7 bil. dollars IBM • Giant‚ diversified
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to an explosion in the total number of unique bricks; each requiring expensive moulding‚ production and inventory. LEGO rightly decided to address this supply chain cost issue‚ and turned to Flextronics‚ a company with considerable experience in outsourcing. Over the next three years‚ with help from Flextronics‚ LEGO transitioned to a low-cost supply chain. However‚ this process did not deliver all the success LEGO had hoped for‚ so in 2007‚ LEGO moved to control its own supply chain again. This report
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Structure is dependent on strategy. If an organisation has vertical integration then they operate a functional structure‚ which gives efficiency through economies of scale. If an organisation uses a diversification structure then there is a business unit structure which gives customer responsiveness. However‚ many firms have a hybrid structure; this type of structure balances efficiency and customer responsiveness. A company also can choose to outsource through a contract with another company for
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