Team Member: Kerry Cunningham, Feng Hu, Tian Tian, Shuo Zhang Nov. 5th
1. Cause of McCuster’s Dilemma
Several organizational factors haves contributed to McCuster’s dilemma:
First, the Flextronics’s decision makers failed to appropriately evaluate the ability and condition of the organization in bidding for Xbox project and assigning tasks. While it is enticing that this project would bring about good reputation as well as substantial financial gain, decision-makers should consider more than financial benefit1.
Managers are paid to make good decisions not risky decisions or conservative decisions1: Flextronics decision makers was too optimistic about the project so that they promised Microsoft the IT solution Flextronics did not have yet despite the fact that it was Flextronics first global project and first foray into sophisticated software. This promise has put Flextronics in risks since now it has trouble coming up with the IT solution. Although group and external pressures (social, political, economic) impact the alternatives we select and biases we have in decision-making1, in Flextronics case, Flextronics could gain cutting edge and good fame from the succeed of the project, and many parties are closely watching this project, decision makers still needs to be objective when making decisions
While Xbox project needs the two facilities designated to work closely, decision makers assigned the project to Mexico facility and Hungary facility, two groups that are both geographically and relationally distant. This decision has led to ineffective communication between the two facilities.
Second, Flextronics’s CEO’s over stress on culture decentralization and the fact that Flextronics’s acquisition led to culture acquisition caused lack of communication1 and trust1 between facilities. Lack of Communication has led to different systems in two facilities. The two plants function separately and have their own respective...