Non Market Strategy Recommendation For Foxconn

1542 Words Oct 25th, 2015 7 Pages
TO: Foxconn Technology Group (Hon Hai Precision Industry Co., Ltd.)
FROM: Kavon Baradaran and Julia Yang, Poka -Yoke Consulting
DATE: October, 25, 2015
SUBJECT: Non-Market Strategy Recommendation for Foxconn
Foxconn Technology Group is the number one firm among Electronics Manufacturing Services (EMS) providers since 2005, and is a global firm that goes beyond China and Taiwan. However, recent market research and analysis show that Foxconn is facing a rather unfavorable publicity regarding its labor practices in its factories. The firm is in dilemma. It wants to retain current clients and maintain leadership in the industry. However, if it were to improve the conditions of its workers, it would entail a raise in costs which potentially undermines its competitiveness. Poka- Yoke Consulting would like to present a set of non-market strategies to resolve this issue and help Foxconn move forward with its leading position within the industry.
Status Quo: Actions Taken by Foxconn
The string of suicides in one of Foxconn’s factories aroused public attention to working and living conditions of low skill workers in China, not to mention heavy criticism towards the company. In 2010, the company has adopted a series of remedial practices such as asking employees to sign a “no suicide” pledges, installed safety nets around the factory, increased salaries, set up a 24 hour hotline service, hired psychiatrists, and even invited Buddhist monks to dispel misfortune. However, all these…
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