Business Management Case Study: Hon Hai's Business

Question one:-

Hon Hai is considered a very important supplier too many of high-technological Companies like Dell, HP, Apple, etc... . Their main interest is the quality putting into consideration also the price. That's why many of US Companies tended to deal with dealers and suppliers from china because of low labor costs. Hon Hai has the world's largest contract in the electronics industry. They are specialized in producing parts for Ipads , Iphones and many other devices .
Hon Hai's sales stepped from $2.9 billion in 2000 to $4.6 billion in 2001 to $7.7 billion in 2002. Analysis estimated that sales may have reached $10 billion in 2003. A profit grown at nearly 30 percent in each year, and also it was expected to reach at least double the percentage increase when the company releases results for 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 edges of its segment business to
Be that as it may, it will set aside opportunity to coordinate Hon Hai's China fabricating framework. The genuine test to Hon Hai on the low end will originate from terrain Chinese opponents, which have turned out to be more forceful in anticipating outsourcing work, says Nomura's Lee. For learner contract makers, he says, one of the most straightforward targets is desktop PCs. This will keep weight on edges, regardless of how productive Hon Hai progresses toward becoming. To look after benefit, Hon Hai necessities to stretch out into different items, Lee