ftr case 18: LEGO GROUP: AN OUTSOURCING JOURNEY
Q1. LEGO had many expectations from the relationship with Flextronics. The main expectations that LEGO required include efficient cost saving techniques, the change of management ability to handle its global production network, upgrade of the procurement processes, profit improvement, the transformation of the aspects of standardization and documentation to become valued, and to become competitive and diverse in the market (Ramanujam).
Q2. The main challenges in maintaining a relationship like the one between LEGO and Flextronics include:
Flextronics become a necessary evil
Difficulty in maintaining effective control and coordination of an increasingly global network of production facilities such as LEGO
Lack of proper management of their global supply chain
Complexity of sharing relevant product information in a timely and consistent manner
The outsourcing decision in ensuring that the business model of the manufacturer and the operation schedule and needs of the client is a problem
Difficulty in identifying the uniqueness of the products and their standardization criteria
Q3. In handling the supply chain complexity, LEGO should standardize their products to change the demand fluctuations. It should also develop effective plans to reduce the supply chain risks. These plans will ensure availability of different alternatives in handling the supply chains. Moreover, LEGO should exercise knowledge sharing. This will ensure that effective communication is boosted. In addition, to spread the key its competencies in the factory, global training and education should be created. In creating proper coordination among its partners, LEGO should create a smart monitoring system both internally and externally. This monitoring system will ensure that the strengths and weaknesses are identified to create relevant strategies.
Q4. The major considerations when outsourcing or offshoring productions include:
Choosing the relevant partner
Choosing an appropriate partner will ensure that LEGO meet their needs on time. Some of the needs include reliability and affordability of their products.
Outsourcing
Outsourcing will make sure that LEGO will reap maximum benefits through increased skills and knowledge of how to market their products.
Effective measuring of the in-house
This will ensure LEGO compare with the offshoring successfully.
Definition of strategic priorities of LEGO and the outsourcing partner
Defining strategic priorities of LEGO will ensure proper outsourcing or offshoring production.
Q5. The competitive environment of the toy making industry was extreme concerning LEGO strategic choices. LEGO faced major competition from other international companies, which translated to market share losses. With these major competitors, LEGO had to defend its market share around the globe, which incurred additional finance within the company.
FTR CASE 25: EMBRAER: SHAKING UP THE AIRCRAFT MANUFACTURING MARKET
Q1. The major firms in the aircraft manufacturing industry are Embraer, Boeing, Bombardier, and Airbus. These firms are categorized into large commercial jets and regional jet market. Airbus and Boeing are in the large commercial jet while Bombardier and Embraer dominate the regional jet market.
Q2. Embraer is known to increase its quality and at the same time reducing its costs. Another value that Embraer has is to develop their planes and to embrace innovation. Also, Embraer values their customers by carrying out the much-needed research. In comparison to Bombardier, Embraer has increased the headspace and legroom in its aircraft.
Q3. Embraer has managed to become successful owing to many factors. First, it has a national competitive advantage over its competitors. Additionally, it pool of human resources has knowledgeable people with the ability to innovate and grow the company. Embraer boasts of a supportive educational framework in ITA and (Aeronautical Technological Institute, CTA (Aeronautical Center). Moreover, Brazil has a huge demand for regional airlines, which assures the company the fulfillment of its needs.
Q4. People mostly consider airplanes as being relatively standardized devices throughout the globe. International flights have brought a great similarity in airplanes across the world owing to the fact that different planes land in different countries. The above explains why Embraer is able to produce airplanes for various nations in Asia, Africa, Europe, and North America among others (Ramanujam).
Q5. The main thing that Embraer should do to continue the innovative culture it already has. Currently, the beneficial market it has is a plus to them. Moreover, its marketing department should be more aggressive as other competitors enter the market to avoid being outcompeted. Besides, the company can emphasize on quicker and bigger planes since the market for the smaller planes might fade with time as competitors come in.
Works Cited
Ramanujam, Vasudevan. Business Policy. McGraw Hill Education, 2015. Print.
