Case Study Analysis: Microsoft: The outsourcing of XBOX production International Business IB300 April 10‚ 2011 In summary the following case was about Microsoft’s quest to enter the video game market with its Xbox gaming console. Microsoft’s history of having a small hardware business forced Microsoft to make a crucial decision about whether it should manufacture this gaming console along with managing a global supply chain or outsource the manufacturing to a third party. They quickly decided
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Key Challenges in Maintaining a Relationship between LEGO and Flextronics Name: Shanshan Liu Andrew ID: shanshal LEGO Group is the fifth-‐largest toy-‐maker in the world with a complicated global supply chain‚ while Flextronics is a large Singaporean electronics manufacturing services provider. So
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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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Executive Summary Born out of the vision of two creative‚ technological supply chain trailblazers‚ Flextronics- the world’s second-largest provider of electronics manufacturing services and the largest global manufacturer of cell phones- took form. Tapping into a burgeoning market of overflow manufacturing services‚ this unique electronic visionary busted onto the technological scene‚ through its humble origins. With service offerings ranging from “stuffing” printed circuit boards‚ for electronic
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Management of Organizations Individual Case Analysis Flextronics Case; Deciding on a shop-floor system for producing the Microsoft Xbox; What actions should McCuster take to reach a decision? Why should he take those decisions? Its Decision time Flextronics prides in a work culture that values fast and very decisive actions. Jim McCusker is at the epicenter of a task conflict. This group decision making process of choosing a shop floor system has to be completed and fast. Time is running
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relationship with Flextronics? Prior to the Flextronics offshore outsourcing project‚ LEGO had a very tight control of all the elements of the value chain. Their production plants were expansive and specialized which‚ in theory‚ would create a higher degree of standardization. Their Swiss factories only produced DUPLO toys and Technic products‚ their Danish factory solely produced LEGO System products‚ and the U.S. facility focused on American demands‚ while only 5 to 10 percent of the LEGO Group’s total
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capacity is reached. Outsourcing is a good strategy for the following situations: Tasks that require specific manufacturing equipment and technical expertise can be outsourced to vendors who specialize in these fields to produce goods faster and of better quality. Outsourcing the supporting processes enables the firm to concentrate on its core business processes. Outsourcing also helps in risk sharing since the outsourced vendor is a specialist who can mitigate risks better. Outsourcing also helps a firm
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LEGO’s main expectations and learnings from the relationship with the Flextronics? Expectations: a. Saving cost by outsourcing to low-cost countries: Prior to outsourcing‚ LEGO owned and operated production plants mainly in relatively high labor-cost countries‚ such as the United States‚ Switzerland and the South Korea. The main reason for this is that LEGO built plants close to its main markets to save transportation cost. But LEGO finally realized that the reduced labor cost in some labor-intensive
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manufactured by Flextronics on a contract basis using designs created by its customers‚ the OEM’s (Original Equipment Manufacturers)‚ Phone 4 was designed and manufactured entirely by Flextronics. This new initiative by this EMS (Electronics Manufacturing Services) is not only a product design initiative‚ but an entirely new business approach that have Intellectual Property (IP)‚ product design and supplier development implications‚ among others. Who is Flextronics? Flextronics is a Singapore-base
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Group 2 LEGO 1. Case Issue The question that LEGO faces is how to make products that interest all age groups. Development of a lifetime product is now becoming more of a challenge as generations increasingly flock to social media and digital entertainment‚ giving up many forms of traditional physical entertainment. 2. Swot Strengths Weaknesses Strong brand image cross the world. Strong product portfolio. Strong mind brand recall. Have a lot of licensing agreement. Product has real
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