Monday, March 4, 2019
Flextronics Case Analysis
Flextronics Case Analysis Team Member Kerry Cunningham, Feng Hu, Tian Tian, Shuo Zhang Nov. 5th 1. get along of McCusters Dilemma Several organizational factors considers contributed to McCusters dilemma First, the Flextronicss last reachrs failed to appropriately evaluate the ability and condition of the organization in bidding for Xbox tolerate and assigning tasks. While it is enticing that this project would commence about good reputation as headspring as veridical financial gain, decision-makers should consider more than financial win1.Managers atomic number 18 paid to make good decisions not risky decisions or conservative decisions1 Flextronics decision makers was in addition optimistic about the project so that they promised Microsoft the IT solution Flextronics did not pay back yet despite the fact that it was Flextronics prototypal orbicular project and first foray into sophisticated softw be. This promise has put Flextronics in risks since now it has smother coming up with the IT solution.Although group and external pressures (social, political, economic) impact the alternatives we select and biases we present in decision-making1, in Flextronics case, Flextronics could gain bleak edge and good fame from the advance of the project, and many parties are deathly watching this project, decision makers heretofore require to be objective when making decisions While Xbox project chooseinesss the ii facilities designated to deform closely, decision makers assigned the project to Mexico inst wholeation and Hungary facility, deuce groups that are both geographically and relationally distant.This decision has led to ineffective communication surrounded by the two facilities. Second, Flextronicss CEOs over stress on assimilation decentralization and the fact that Flextronicss acquisition led to culture acquisition caused lack of communication1 and go for1 between facilities. Lack of Communication has led to several(predicate) system s in two facilities. The two plants function separately and accept their testify respective cost control, this leading to conflict about which system to adopt.If the Hungary facility has communicated with the headquarter about which system to adopt in the first place, the headquarter would probably piss suggested Hungary facility to adopt Datasweep like Mexico facility did, and Flextronics would not have this dilemma at all. Now that the facilities are having problem in switching system, they still refuse to confidence each others system, they are charge un provideing to communicate with each other about the system. This lack of trust and communication has worsened Flextronicss situation. 2.Criteria in Decision Evaluation The intimately prior criterion in decision evaluation is whether the ultimate decision enables Flextronics to make profits in the long run. Since profit enables enterprises to survive and developlast. pull ahead is also the reason for the establish profit o riented enterprises. However, in soulfulness tasks such as Xbox project, the priority may be developing cutting edge and enhance reputation rather than financial gain, but this project would be valueless if it cannot bring about financial benefit in the long run.The second most important criterion is client satisfaction. In this case, customer satisfaction means whether Flextronics produces Xbox in good quality, right quantity, with fair price, and in timely manner. Flextronics also needs to meet Microsofts exigency in system adoption and production control. As Microsoft is an important customer and the projects success could bring about substantial benefit for Flextronics, it is important to stick to the contract with Microsoft. Another important criterion would be whether the ultimate decision leads to good team up work.Now that the Hungary facility and Mexico facility have inconsistency in production and refuse to compromise, decision makers need to dumbfound up with a soluti on to involve the two facilities in close cooperation, which is the key to success in launching Xbox in two markets at the same time. As good teamwork in Xbox would lead to enhanced work efficiency and good example for early projects, it is important for decision makers to permit the two facilities impartingly reach an agreement. 3. Actions to Take In position to encounter the criteria mentioned above, Mr. McCusker should bring in the following actions before he reaches a decision.First of all, in order to make sure the company can benefit from this project, he need make comprehensive analysis on every aspect including costs, latent profit, customer satisfaction and future influences on market share of all those three possible scenarios. The first decision alternative is putting Datasweep in both Mexico and Hungary. This fits to both the philosophy of Mark, the CEO of Flextronics and the requirement of Microsoft. Moreover, Datasweep is a scalable solution over Visual manufac tory, thus facilitating future projects on a global view.On the other hand, the cost is a big issue. Besides, the uncertainty to pass the new system may disorder the normal operation for Hungarian for a period of time. Well, decision-makers should consider more than financial benefit1. As this is a global project, McCusker should view it as a whole. If this solution does meet the criteria of the company, those two branches should share the total cost and profit. Furthermore, the Mexico factory should send some engineers who are familiar with Datasweep to Hungarian to make it operate well as shortly as possible.Because the Xbox will be built first in Mexico, at that place is still some time for Hungary to adopt the new system. In this case, Flextronics will become more and more global-orientated and get ready for tremendous future projects. However, there is still some uncertainty exists, because the management team in Hungary is self-important. They are quite unwilling to switch and would exclusively do so if the CEO commanded. They may have some psychological issues which will have bad effects on carrying on the project. The second one is to fall up Visual Factory in Mexico.It will save a lot of money, which is a big issue in this industry. This system has been well self-customized by the Hungarian team and they believe that they have already observe and fixed most of the bugs. But the opprobrious defect is that Visual Factory has no credibility outside of Hungary. It is extremely hard to convince Microsoft and the executives and IT team of Flextronics to trust this new system. Moreover, because of the build of Xbox starting from Mexico, time is another faultfinding issue. The third option is allowing each branch uses their own software system. This will benefit both plants without any risk.Nevertheless, there is also a fatal drawback of this option that is it can hardly meet the basic requirement of Microsoft for a single software platform. Whats mor e, it lacks global synergies which will be a barrier for Flextronics to develop in the long run. The second action McCusker should take is talking to Michael Marks, the CEO of Flextronics, putting all three options and all the pros and cons of them agree to the comprehensive analysis and asking for his advice and even help. In this case, this is indeed needed, though it is not recommended to refer to boss for help.Because this is a global project which need close cooperation of the big two branches, its hard for McCusker, the project manager, to weigh with those senior executives. Furthermore, Humphrey Porter, president of Central Europe, and his team even claimed that they would switch to Datasweep only if Michael Marks ask to do so as an order. In this case, without the grace of Michael Marks, its useless for McCusker to reach any decision. The third one is to channel a conference with all the key heap including Humphrey Porter, Matt Ryan, Jim McCusker, mike Webb, Robert Dyk es and Michael Marks.Because one of the biggest problems of Flextronics is lack of communication, this conference will help those key people in this project to know the situation better and build trust and familiarity among them1. After they consider and discuss all the pros and cons of every option event to face without any communication barrels, they stand a good relegate to reach an optimal decision. A good teamwork among different branches would also benefit a lot for the future development of Flextronics as a global company.