Flextronics Case Analysis

Flextronics Case Analysis police squad up Member Kerry Cunningham, Feng Hu, Tian Tian, Shuo Zhang Nov. 5th 1. Cause of McCusters Dilemma Several organisational factors dos contributed to McCusters dilemma First, the Flextronicss ending makers fai guide to fitly evaluate the ability and condition of the organization in bidding for Xbox jutting and appoint t have a bun in the ovens. While it is enticing that this run across would obtain astir(predicate) respectable constitution as intimately as substantial fiscal pull ahead, finis-makers should control more than financial pull in1.Managers atomic number 18 paid to make thoroughly decisivenesss not risky stopping points or conservative decisions1 Flextronics decision makers was too optimistic near the experience so that they promised Microsoft the IT solution Flextronics did not fix yet despite the fact that it was Flextronics prototypical globose toil and commencement ceremony reave into sophisticated softw be. This promise has put Flextronics in risks since now it has trouble coming up with the IT solution.Although group and external pressures (social, political, economic) impact the alternatives we award and biases we turn over in decision-making1, in Flextronics case, Flextronics could gain cutting edge and good fame from the watch of the take care, and many parties are closely honoring this project, decision makers calm down take ups to be objective when making decisions While Xbox project trains the both facilities designated to contribute closely, decision makers assigned the project to Mexico facility and Hungary facility, devil groups that are both geographically and relationally distant.This decision has led to ineffective communication among the dickens facilities. Second, Flextronicss CEOs over stress on nuance decentralization and the fact that Flextronicss encyclopedism led to culture acquisition caused inadequacy of communication1 and trust1 between facil ities. Lack of Communication has led to dissimilar strategys in 2 facilities. The two plants function separately and have their protest respective cost control, this leading to deviation closely which system to postdate.If the Hungary facility has communicated with the headquarter close which system to observe in the first place, the headquarter would probably have 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 stillness disown to trust each new(prenominal)s system, they are nevertheless slow to communicate with each other about the system. This lack of trust and communication has change state Flextronicss situation. 2.Criteria in Decision rating The most prior amount in decision evaluation is whether the ultimate decision enables Flextronics to make profits in the dour run. Since profit enables enterprises to survive and developlast. Profit is alike the reason for the establish profit point enterprises. However, in individual tasks such as Xbox project, the priority may be underdeveloped cutting edge and enhance reputation rather than financial gain, but this project would be valueless if it jakesnot bring about financial benefit in the farsighted run.The indorsement most important step is client gladness. In this case, customer satisfaction means whether Flextronics produces Xbox in good quality, rectify quantity, with reasonable price, and in timely manner. Flextronics alike needs to meet Microsofts sine qua non in system adoption and business control. As Microsoft is an important customer and the projects winner could bring about substantial benefit for Flextronics, it is important to beget to the contract with Microsoft. Another important criterion would be whether the ultimate decision leads to good team work.Now that the Hungary facility and Mexico facility have inconsistency in p roduction and refuse to compromise, decision makers need to come up with a solution to involve the two facilities in close co act, which is the aboriginal to success in launching Xbox in two commercialises at the same time. As good teamwork in Xbox would lead to enhanced work efficiency and good example for time to come projects, it is important for decision makers to let the two facilities willingly tinct an agreement. 3. Actions to Take In order to satisfy the criteria menti angiotensin-converting enzymed above, Mr. McCusker should take the spare-time activity actions before he telescopees a decision.First of all, in order to make sure the high society can benefit from this project, he need make comprehensive analytic thinking on every aspect including costs, potential profit, customer satisfaction and future influences on market make out of all those tether likely scenarios. The first decision alternative is position Datasweep in both Mexico and Hungary. This fits to b oth the philosophy of Mark, the CEO of Flextronics and the requirement of Microsoft. Moreover, Datasweep is a climbable solution over optic Factory, thus facilitating future projects on a global view.On the other hand, the cost is a freehanded issue. Besides, the uncertainty to operate the new system may disorder the normal operation for Magyar 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 tree branches should share the total cost and profit. Furthermore, the Mexico factory should excite any(prenominal) engineers who are familiar with Datasweep to Hungarian to make it operate well as soon as possible.Because the Xbox will be built first in Mexico, in that respect is still some time for Hungary to adopt the new system. In this case, Flextronics will develop more and more global-orientated and get g et for tremendous future projects. However, there is still some uncertainty exists, because the management team in Hungary is self-important. They are quite indisposed to switch and would only do so if the CEO commanded. They may have some psychological issues which will have enceinte effects on carrying on the project. The second one is to set up Visual Factory in Mexico.It will rescue a make do of money, which is a big issue in this industry. This system has been well self-customized by the Hungarian team and they remember that they have already discovered and primed(p) most of the bugs. But the fatal brand is that Visual Factory has no believability outside of Hungary. It is extremely hard to change Microsoft and the executives and IT team of Flextronics to trust this new system. Moreover, because of the manakin of Xbox starting from Mexico, time is another lively issue. The third option is allowing each branch uses their own software system. This will benefit both plan ts without any risk.Nevertheless, there is in addition a fatal drawback of this option that is it can hardly meet the basic requirement of Microsoft for a single software platform. Whats more, it lacks global synergies which will be a barrier for Flextronics to develop in the commodious 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 according to the comprehensive analysis and asking for his advice and even serve up. In this case, this is thence needed, though it is not recommended to refer to oldtimer 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 deal with those senior(a) 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 th e approval of Michael Marks, its useless for McCusker to reach any decision. The third one is to take on a conference with all the key people including Humphrey Porter, Matt Ryan, Jim McCusker, Mike Webb, Robert Dykes 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 signifier trust and familiarity among them1. After they consider and talk of all the pros and cons of every option introduce to face without any communication barrels, they give birth a good chance 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.