De Havilland Inc Case Study

Small firms often find it difficult to compete with larger firms. Though there are some disadvantages DG will never be able to overcome due to its size, small firms have advantages over their larger counterparts.

Casturn hired a consulting company that possibly didn’t have the best interest of Casturn as its core motivation. The consulting company was paid on POTENTIAL cost savings and identification instead of a results oriented contract. Due to this structure, it became about quantity of parts that can be included in the bid instead of identifying the top say twenty percent of parts that, if managed well, could have yielded both companies a lucrative cost savings in the resourcing effort. In addition, the consulting company exited the process after the initial stages giving no one accountability to carry the resourcing effort to fruition.

Danville Airlines has created an ethical and legal dilemma by not being accurate, precise and clear on how they are doing medical testing, causing undue stress and potentially career-ending circumstances for David Reiger, one of their best pilots. What Danville did was illegal and unethical due to negligence. David Reiger has every right to sue them to continue flying, and the medical evidence suggests that the Huntington's disease gene can be dormant for decades before being active and changing a person's nervous system (Darden, 2004). The company has violated the 1974 Privacy Act, the Heath Insurance Portability and Accountability Act of 1996, and the 1990 Americans With Disabilities Act. As is best practice with the nascent, emerging field of genetic testing, Danville did not warn Reiger of the testing taking place, did not get his permission, and didn't even have a process in place for dealing with pilots, whom the traveling public relies on for safe transport, when they are tested positive for these types of diseases (Murry, Wimbush, Dalton, 2001). Clearly Reiger would win any lawsuit, the collateral damage to Danville being the lack of oversight and gross negligence in managing health screening.

What are the strategic risks and benefits of outsourcing production of the Temecula plant to contract manufacturers in China?

1. Competitor The competitor might out beat them and threat is higher for their market share. Lack of planning would have big impact to the company. They should anticipate for the rivalry between them. Timing and being competitive is important. If they are not met, this would incur loss in the company.

Businesses are not only faced with competition within the industry they operate in. They also face competition from businesses in other industries.

The firm is not able to realize economies since they are not able to produce larger orders as easy. They are not able to meet capacity utilization within the plant due to operational inefficiencies.

Threats: big competitors; loosing money in the process of implementation international strategy; lack of promotion; etc.

One of the major failures that occurred in the case was the time length of the negotiation. The negotiation took almost one year to come to certain terms of the Cousins and is not even completed yet. Hertford and Foster’s lack of preparation and power to make decisions lead to such lengthy negotiation. Both of them don’t have solid figures of what their restriction points should be, except formula price. Most times, they have to keep forwarding the Cousins negotiation terms to their bosses and get their approvals. It made clear to the Cousins that expect basic formula price, the TexasAgs have no other concrete information. It also gave ample amount of time to raise issues such as market fluctuations, competitive

Market entry risks such as cultural differences, competitors, legislation, transportation issues, infringement of intellectual property rights and copyright.

The core problem is about their management style in top level. With such a highly efficient production line plant, the company 's management is like a job-shop, the executives take charge of every small decision of almost everyone. This greatly weakens the possibility to expand, because the one or two top management are not available dealing with so many daily issues. In addition, due to the size and life-long

The company may have to pay higher production costs or may not be able to produce and

Airborne Express the current underdog in the express mail business has been able to compete with market leaders due to innovation and optimization strategy. The company built on cutting cost and emphasizing reliability now faces pressure from the leaders UPS and FedEx to change their pricing strategy. This change from standard rate pricing to distance-based pricing puts Airborne in a dilemma in which they must choose to match the competition which will make them lose what sets them apart in the market or stay with the current strategy. Changing will increase their flexibility and could open them up to new consumers while staying the same

do not ignore that with which you compete, or that which can devalue your company, especially if in the same market.

There are also several disadvantages to outsourcing agreements, which include becoming dependent on an outside supplier for services, failing to realize the purported cost savings from outsourcing, locking into a negative relationship, losing control over critical functions, and lowering the morale of permanent employees.