Warehouse In Brazil Increase Rona example essay topic
504 words
Nova Incorporated: Two Sourcing Opportunities An Introduction Before John Fisher decides to take some holydays he gets two memorandums fro their Executives in Asia PAC and South America that are showing their interest in to improve the RONA thought strategic alliances in APAC and an outsourcing contract in South America to better improve RONA and delivery in both areas. Questions 1. Evaluate the risks and rewards of internationalization / globalization through cooperative strategies via the opportunities to (1) enter into joint ventures in China and India in exchange for licenses to NOVA's process and product technology and (2) outsource manufacturing in Brazil. Joint Ventures in China & India Risks- Government Laws and policies- Loss of Quality Control Rewards- Low labor price- Reduce cost of distribution- Increase sales by a factor of 10- Increase RONA up to 55%- Export opportunities in other neighbors market- Expand Brand and technology to these countries Outsourcing Manufacturing in Brazil Risks- Loss of Quality Control- Loss of Product Secrets- Loss of Innovation Rewards- No Investment from NOVA- No transportation or distribution cost- No currency fluctuations- Reduce time to supply the warehouse in Brazil- Increase RONA up to 40%- Increase value of Costumer Service 2. Discuss market orientation in the context of sourcing strategies: 'How do we assure that we provide our customers the right product / service at the right place, at the right time, at the right price, at our best total cost'? If they decide to go ahead with that sourcing strategies NOVA will improve: - In place because they can deliver more efficiently and quickly and they will improve the loyalty of costumers.
- In time because they will have the ability to deliver in more accurate time to the costumers supplying almost Just In Time (JIT). - In price because with the labor costs they are reducing dramatically the cost of manufacturing and in addition they don't have the cost impact of shipping from Cincinnati, that means they will have better cost for the costumers and better margin for NOVA. 3. Raise some fundamental questions about core competencies and company identity: SS 'Why do we manufacture anything internally?' o Its good but very expensive No transfer of technology keeps secret in house 'Where is our value-added?' o At these moment I think is only technology and innovation. SS 'How do we capture and share information that will enable the required communication, coordination, cooperation, and control among value-chain partners?" Conclusion The conclusion will be that they have to focus into innovate and sell technology to the countries where manufacturing is chip if we compare with US (Cincinnati) rather than China, India or Brazil. That means that they will improve the RONA if they choose the right Partners to go ahead with the global sourcing strategy with some contracts of Technology Transfer or Outsourcing Manufacturing.
In Cincinnati is where they will innovate and create news products to manufacture where the total cost will improve the RONA.
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