Whistler Corporation

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The newly appointed President Charles Stott has to decide about the company’s manufacturing strategy to be cost competitive with the offshore manufacturerDespite the manufacturing high defect rate, WC in 1985 managed to perform and became a domestic leader with 21% market share (p.262). In 1996 the huge market success in financial performance started to decline drastically because of the off-shore price competition and lack of proactive act from the head of the manufacturer. This resulted WC market share drop down to 12%, as seen in exhibit 3. The circumstance has forced Whistler Corporation to consider an alternate approach of different product development from their market research by leveraging their resources. However, RACE –ME program, a model developed from a short empirical data rose some questions from the executive levels especially the severity of shutting down a manufacturing plant. Based on the evidence, Charles Scott should think about closing the domestic manufacturing in the U.S. This does not eliminate the competition from Far East vendors. The recent market showed a decrease in the production or usage of RD due to a change in legislation in the U.S., which has affected the next growing market, European countries.. Since Whistler’s Corporation has a great strength in design and engineering, the best decision will be to concentrate on its core strengths and move the production plants to offshore with the potential vendors. In order to implement the above recommendation, management has the responsibility to determine the short term and long term action plans for the business, as well as for their employees. There are always risks associated in transferring processes offshore . In order to avoid the risk, Whistler should try to move one segment of the project at a time.. One of the high risks is to mitigate foreign exchange.
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