Flextronics: Deciding on a Shop-Floor System for Producing the Microsoft Xbox.
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Q1. Underlying preferences of the relevant parties?
The conflicting preferences among the relevant parties are:
Flextronics won the order from Microsoft to manufacture the Xbox. Microsoft hopes to launch the Xbox simultaneously in both North American and European Markets. That requires the manufacturer--- Flextronics’ two facilities designated to build the product would have to work together very closely to achieve Microsoft’s goal. To do that, Flextronics have to use the same shop-floor management system in both facilities so that Microsoft could track all the production statistics more easily, which also is the commitment made by Flextronics when it was biding the business.
The North America facility use Datasweep as the new…show more content… The perspective of company’s overall interests and development was missing here.
Second, the rapid growth and geographical dispersion of the company made it challenging for people to build relationships across the company. Although Porter and Ryan knew each other prior to the Xbox project, they had only seen each other in person three or four times one year. People from different regions still knew nothing about what their counterparts were doing.
Third, while Flextronics’s global strategy, solely based on low-cost purpose, failed to take advantage of synergy effect such as knowledge and technology flow.
At last, more specifically within the project team, which was originally constituted to address specific needs of customers, account manager had limited power, which put McCusker in frustrating position to force either side to compromise
Q3: What criteria to judge? Priority
1. Development of globalization strategy, global operation could provide Flextronics competitive advantage in its industry, which required coordination among its various facilities.
2. Whether they can deliver the products timely and provide accurate production date portal as they promised. As the very first global project, success or failure will greatly affect customers’ viewpoint about Flextronics’ credibility and whether they can maintain leading position in this