Trigger 4
In manufacturing firms, managers play an important role in determining how the company will compete in future. They draw support from manufacturing strategy and its fundamental factors. However, companies are turning towards globalization, where manufacturing plants are located at various international locations, often in emerging economies.
HIT manufactures electronic appliances in Vantaa. It manufactures products under licence from other innovator firms, who create market. HIT does not have financial resources to lead research & development. An opportunity arises, where HIT can be involved in international business for coming years. This new venture would demand HIT to establish automation in its current production facility to meet the possible capacity gaps between forecasts and actual orders. Another possibility is to find an international partner, preferably in emerging economies with whom HIT could build a new state of the art production plant, where AI, big data, IIoT, robotics etc. could be applied to develop design and innovation capabilities as well as to improve its market share, if competitors fail to compete in price, quality and capacity at the time it is needed. HIT’s CEO wishes to hear your opinion on important aspects to be considered before making a decision. (Adapted from Modern POM by Buffa & Sarin)