Solectron: From Contract Manufacturer to Global Supply Chain Integrator Background Solectron Corporation is but another classic case of a company that benefited immensely from the dot.com boom, only to experience the pains of the bust as the dot.com companies went down in the early 2000s. From its humble beginnings in Milpitas, CA as a solar energy products manufacturer, Solectron grew to be a highly successful global supply chain integrator with revenues of $18.6 billion by 2001. From the time it was founded in 1977 through 2000, the company grew in leaps and bounds mainly through lateral acquisitions. After struggling as a manufacturer of solar energy products, the company moved to making printed circuit boards (PCBs) for …show more content…
Through GEARS, Solectron was able to organize the whole company into business units that focused on different aspects of the business ' Technology Solutions, Global Manufacturing, Global Services, and Global Materials Services. OEMs were able to outsource more of their functions to Solectron, which in turn allowed Solectron to become involved in customers’ product designs, parts procurement, assembling and testing. This freed up the customers to focus on core competencies, such as research, marketing and sales. So with business going so well for Solectron, how did everything go wrong for the company starting in 2001? Revenue fell from $6.5 billion in 3rd quarter 2000 to $2.2 billion in the same quarter of 2001. The company laid-off 20,000 employees; its stock plummeted; it was faced with plant closures, excess inventory and reduction of floor space. Was it a case of poor planning and management or just the company a victim of an economic downturn? This case analysis will explore what Solectron did wrong and what they could have done and offer some suggestions. It is also interesting to note the Solectron foresaw a pending boom in the Asia (China & India) markets and that if it was able to weather the prevailing storm, Solectron stood a chance of rising up again and succeed. Issue Identification There are three factors that led to Solectron’s downturn in the early 2000s. First is the
In order to write Giovanni and Lusanna, Gene Brucker had to rely on primary historical sources, such as notarial transcripts and Florentine catasto records, which provide information created at the time and place, rather than speculative information created later on, but were also subject to the biases of those whose testimony and information were recorded at the time.
Electro Inc. is fast developing company which strive to build a high tech wonder company image, it also has clear market segmentation and specific strategies to penetrate this segment. However, in recent report, the company’s financial statement indicates that the company experience financial difficulties at this moment. Some managers believe that this difficulty is largely due to two projects – Series A and Mercury. In this case analysis I will examine these two projects and make some recommendations for the company’s management as a whole.
Paul worked for a company by the name of Kelecton. The small company kelecton has two hundred and forty workers/employees that manufacture software for utility companies. Based on the survey, Paul needs to concentrate on a few things such as safety, working conditions, work-load distribution as well as compensation. If Paul concentrate on the above issues, it will allow him to take the necessary steps in order to come up with needed changes to their present systems as well as policies. This strategic plan offers Paul some procedures as well as steps to follow while coming up with solutions to the concerns of his employees without spending too much money.
After a thorough evaluation of various options available to Nucleon Inc. to bring their product to market, we recommend that Nucleon Inc. pursues the option of In-house Pilot Plant for Phase I and Licensing for Phase III.
Market leadership and technological innovation have marked Sealed Air's participation in the U.S. protective packaging market. Several small regional producers have introduced products, which are less effective than Sealed Air's but similar in appearance and cheaper. The company must determine its response to this new competition. The company is faced with a difficult choice of choosing from a range of feasible options ranging from doing nothing to introducing a new product. This has raised product line management issues, particularly cannibalization, and affords the opportunity for the development of a marketing plan for any new product introduction. The timing of launch and any change in policies for Air Cap
There is a suitable—albeit different—market for Lockheed Martin’s aerospace and defense products in Ireland. As a result, Lockheed Martin must align their strategy to fulfill the Ireland market’s requirements, adjust their position and competitive strategy to capture the market from different competitors, and revise their promotional practices to attract an Ireland market. Additionally, the corporation must continue to leverage their key competencies to maintain their brand and provide value to the market. Provided Lockheed Martin adjusts their strategy accordingly, the corporation can complete the Ireland expansion mission successfully.
Nature of the business: Comptronix’s main product was circuit boards for personal computers and medical devices. This industry is a rapidly changing industry where technologies might become out-of-date rapidly. The nature of this industry is in such a way that could negatively impact the sales of companies with slightly outdated technologies while could considerably increase the sales of companies with slightly more advanced technology. It is therefore evident that an inherent risk factor exists for Comptronix due to their nature of business. Due to fast technology changes in electronics industry there is a high risk of inventory obsolescence and misestimating some accounts. This would also contribute to increase inherent auditing risk.
CEO John McDonough decided on making acquisition of Calphalon and Rubbermaid, which influent shareholders’ confidence.
In 1977, Solectron was founded in the wake of the solar energy boom, and primarily focused on making solar energy products. They soon began assembling printed circuit boards for other electronic firms. Solectron was located close to Silicon Valley and its electronic industry, so a number of clients were readily available for its manufacturing services. In the early 1980s, Solectron turned their efforts towards contract manufacturing, which turned the job shop business into an important industry. Solectron began to purchase the manufacturing facilities of its customers, which enabled them to sign long-term supply contracts with them as well as
According to the product-market matrix above, and after reading about the industry, it is apparent that Fe’nix del Sur competes in selling authentic
PAC Resources, Inc. is a small manufacturing company that specializes in high-quality specialized components for computers. Recently the company has faced a number of issues involving depleting sales, employee unrest, poor management and employee relations, and a lack of HR support. Currently, there are several pending decisions to be solved involving the organization and the HR department, human resource development, safety and security, staffing, compensation and benefits, and employee relations. Ultimately, to resolve these problems the solutions will take account of a SWOT analysis of the company along with multiple sources, potential alternatives, and dissenting opinions as a guide to the best
* Limited ability to invest in technology and new products due to smaller corporate sizes and inability to
Kirkham’s strategy was to integrate the different systems of each division into an “all-inclusive” product and also to involve all the divisions together with regards to product development, instead of letting each division be responsible for just products within that division. Mr. Donaldson chose Kathleen Quinn, Vice-President of R&D, to be responsible for coordinating the development of new products. This proved to be quite a challenging task considering that each managing director (of each division) still retained responsibility for the turnover and profitability of their respective decisions and also for the strategies to achieve the goals of their divisions. In addition, regardless of the trend of their customers in purchasing integrated systems, the majority of each division’s turnover came from the sale of stand-alone products.
Lenovo Group Ltd. (Lenovo) is a Chinese multinational technology corporation that founded in Beijing in 1984. Specifically, Lenovo is one of the top enterprises that produces and sells consumer electronics and computer hardware, with a focus on producing personal computer (PC). Currently, the headquarter of Lenovo is in Beijing, China, with a second headquarter that located in Morrisville, North Carolina, United States. As a multinational enterprise, Lenovo currently have operations in more than sixty countries and has its products sold almost all over the world.1 Becoming a multinational enterprise especially making it to the top of the industry is not an easy thing for any company due to numerous predictable and unforeseen challenges. However, Lenovo has successfully expanded its business and reached to the top. Therefore, the present paper aims to analyze Lenovo’s operational/managerial strategies and provide a better sense of what has Lenovo done for reaching to the current position in the global market.
In the component market, integrated circuit technology is threat of new entrants. The growth of integrated circuit technology makes existing component market shrink. EPD has taken aggressive moves to protect its market share from competitors and new entrants. Therefore, in existing market, EPD needs a cost reduction effort more and change their business model into low-margin high-volume business. It means that they should change their evaluation system; the plant should maintain 40% of gross margin. Additionally, they need to introduce new products into market to acquire new source of revenue. EPD has not built the clear strategies and shared them with employees.