Business Studies

Please rewrite case study answers in your own words and add 4 different sources in APA (2017-2022) format with Doi format and 1 biblical source… only keepSimchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2021). as a source:
Solectron was founded in 1977 with an initial focus on making solar energy
equipment (Simchi-Levi et al., 2021). They started as a contract manufacturer and developed into a global supply chain integrator manufactured for original equipment manufacturers (OEMs). The company grew its focus using quality and culture and became the leading company in electronics manufacturing services (EMS) in the late 1970s. They used the specifications for improvement of the Malcolm Baldridge National Quality Award as a template for continual success in quality and culture; that led to the company winning the award twice, which was unprecedented. However, their key issues were uncertainty in
the business environment, dependency on top customers, lack of risk evaluation and management, increased volatility of customer demand, and the complexity of managing the global supply chain. Solectron’s success led to growth globally, in more than 20 countries, serving customers in communications, networking, computing and storage, consumer products, automotive, medical, and industrial markets (key companies – Ericsson, Cisco, Compad, HP & IBM). With the rapid growth in the EMS industry, by the mid-1990s, Solectron became the dominant company (Simchi-Levi et al., 2021). Also, in the 1990s, Solectron enacted a
new business model based on acquisition and growth in size and service range
implementing the Global Materials Services: Technology Solutions (technology building blocks helping customers minimize time-to-market for new products), Global Manufacturing (provided design, new product introduction, and manufacturing and distribution services), and Global Services (provided repair, upgrade, and maintenance, logistics, return management, warehousing, and other port-manufacturing support services). Thus, creating a business unit that includes sourcing, procurement, and other common supply-based management resources.
1. How has Solectron’s Value to its customers evolved over time?
Customers engage in quality assurance behaviors to increase their satisfaction while recovering from service failures (Youngdahl & Kellogg, 1996). Dr. Koichi Nishimura approached the concept of quality assurance with the idea of never being satisfied, continually questioning existing practices, striving for continuous improvement, and acquisitions (enabled Solectron to gain long-term contracts from clients) (Simchi-Levi et al., 2021). Having the idea of “customer first” Solectron strengthened relationships and provided products and services of a more significant value through innovation. They also emphasized communication, associate dignity, equality, and individual growth strategies.
2. How has global expansion contributed to Solectron’s ability to move from a contract manufacturing supplier to a supply chain integrator?
Integration of supply chain is strategic and has operational importance as part of the core of business logistics, operations, and supply chain management (Fabbe-Costes et al., 2008). Partnerships supplying goods to customers make the work easier to maintain and shifts the focus to core competencies, allowing for separation of product and production lines to specific regions. Utilizing SCI also reduces the bullwhip effect and allows for early problem detection, lower cost, faster response times, improved service, improved capacity, asset utilization, and trust-building.
3. How has the company been able to successfully integrate its acquisitions?
Acquisitions factor in relational rents: relation-specific assets, knowledge-sharing routines, complementary resources/capabilities, and effective governance to analyze the likelihood of an organization’s candidacy (He et al., 2013). Regarding Solectron, a company (start-ups) had to show potential to grow before being acquired. Solectron developed an integration team (4-8 people) from major functional areas to create and implement an acquisition/integration plan that would oversee the process 3-6 months after being acquired. The team used a checklist to ensure alignment with the corporate culture of quality. Once this process was completed, the next step was to integrate the employees from the newly acquired company and trained by Solectron to ensure intelligence, know-how, and employee
experience required (Simchi-Levi et al., 2021).
4. What was the impact of the company’s culture on the success of the company, on the business downturn of 2001, and on its ability to respond to the business downturn?
The impact of the company’s culture “lowest cost” can only be achieved with the
“highest quality standards” using superior customer service and respect for the individual led to early and continual success for the company. The downturn of 2001 (declining demand) led to overcapacity and excess supply, at which Solectron was forced to return excess materials to customers (OEM) (Simchi-Levi et al., 2021). By decreasing inventory, recycling the Just In Time
(JIT) practices to reduce the risk of future excess materials, reducing employees, and facility closures, Solectron was able to sustain their reputation as a supply chain integrator, which allowed them to enter into the Asian market.
5. What additional products and services should Solectron provide to its customers in the future?
Based on the information provided, Solectron could benefit from adding technology
solutions services for their customers and clients.
6. What should the company do in the short term? In the long term?
Solectron should, in the short term, continue to reduce cost and excess materials or inventory by returning the materials to OEM customers, continue using the JIT practice to safeguard production demands. The JIT philosophy advocates eliminating waste by simplifying production processes; ultimately leading to reduced setup time, control of material flow, and emphasis on preventative maintenance and effective resource utilization (Kannan et al., 2005). Solectron will also need to analyze and forecast demand for the Asian market and use joint forecasting with other OEM countries. For the long term, Solectron should use outsourcing as a strategy (OEM) to maintain continued acceleration globally.
References
Fabbe-Costes, N., Jahre, M., & Roussat, C. (2008). Towards a typology of the roles of logistics
service providers as ‘supply chain integrators’. Supply Chain Forum, 9(2), 28-43.
https://doi.org/10.1080/16258312.2008.11517197
He, Q., Ghobadian, A., & Gallear, D. (2013). Knowledge acquisition in supply chain
partnerships: The role of power. International Journal of Production Economics, 141(2),
605-618. https://doi.org/10.1016/j.ijpe.2012.09.019
Kannan, V. R., & Tan, K. C. (2005). Just in time, total quality management, and supply chain
management: Understanding their linkages and impact on business performance. Omega
(Oxford), 33(2), 153-162. https://doi.org/10.1016/j.omega.2004.03.012
Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2021). Designing and managing the supply
chain: Concepts, strategies, and case studies. (Third edition.). New York, NY: Richard D.
Irwin, Inc.
Youngdahl, W. E., & Kellogg, D. L. (1997). The relationship between service customers’ quality
assurance behaviors, satisfaction, and effort: A cost of quality perspective. Journal of
Operations Management, 15(1), 19-32. https://doi.org/10.1016/S0272-6963(96)00097-6

ANSWER

Rewrite Case Study

Q1. How has Solectron’s Value to its customers evolved over time?

Customer satisfaction is an essential part of retaining customers. Customers will often move from one service provider to the next to recover from service failures. Solectron ensured that they approached the concept of quality assurance with the idea of customers constantly receiving quality producers. This meant that every time the customer approached their services, they would get more satisfied than the last time hence never fulfilling their need for satisfaction. The company keep improving the quality of products and services. Placing the customers’ needs first helped the company have strong relationships with its customers, and through innovation, they continuously provided high-value products (Simchi-Levi et al., 2021). The company was also big on communication, equality and individual growth, which has helped in the growth and evolution of the company. The company used the Principle of evident interaction with its customers by relying heavily on the customer’s feedback and input to improve their work and increase customer satisfaction continuously.

Q2. How has global expansion contributed to Solectron’s ability to move from a contract manufacturing supplier to a supply chain integrator?

Global expansion has enabled the company to move from a contract manufacturing supplier to a supply integrator because the bullwhip effect has been reduced (Nambisan et al., 2019). The customers can now deal with the company directly, thus reducing the demand distortion that travels upstream. The ability to deal directly with the customers due to globalization has helped the company expand because it can now directly deal with the customers without the distortion of the middlemen (Luo & Tung, 2018). Supplying the goods to customers directly makes it easier for the company to keep track of the goods, ensuring that the customers receive the quality they expect. There is also easier and earlier problem detection, lower costs, and faster responses, and generally, the company can provide improved services to its customers. The global expansion has also helped in the reduction of lead times as locations are closer to consumers and therefore improving customer satisfaction.

Q3. How has the company been able to successfully integrate its acquisitions?

Acquisitions occur when a financially strong entity acquires an entity that is less strong by buying more than 50 percent shares. For a company to be acquired, it has to show growth potential. The company has managed to integrate its acquisitions by developing integration teams. The teams have four to eight people from major functional areas (King et al., 2018). The team is required to create an acquisition and implementation plan that sees that integration is successful within 3-6 months. The team used a checklist to ensure that the company acquired aligns with the culture and quality of Solectron. After this process, the next step was to ensure that the employees from the newly acquired company were trained and were taught on the workings of the company. Following these steps and ensuring that the employees from the acquired company are taught and have the skills required by Solectron has helped the company to integrate its new acquisitions successfully.

Q4. What was the impact of the company’s culture on the success of the company, on the business downturn of 2001, and on its ability to respond to the business downturn?

The company’s culture “lowest cist can only be achieved with the highest quality standards,” placing the customers at the core of their organization by respecting the individuals led to the companies early and continued success. The downturn in 2001 led to the company having excess goods and materials, which led to the company having to return the materials to the customers. The company did not lose its culture during the downturn, which helped it uphold its reputation. The company reduced the workforce to ensure that it did not sink. To avoid losing its customers, it improved customer services and efficiency. The company recycled materials, closed some of its facilities, and took the necessary steps to reduce future risks. The company, however, remained on top and managed to enter the Asian market by maintaining its culture of providing quality products and services to its customers. The bible talks about serving whole heartfelt as if one is serving the Lord because the Lord rewards everyone for their good deeds “Be known for great leadership and services to your customers, but also to your employees (Ephesians 6:7-8).” Providing quality during their most challenging times helped the company recover.

Q5.  What additional products and services should Solectron provide to its customers in the future?

The company should consider including technology solution services to their customers and clients. There are also other things they can consider adding to their organization, such as a new market with solar energy solutions. The new age of renewable energy sources requires organizations to evolve and move with the changes (Agyabeng-Mensah et al., 2020). The company can supply solar energy solutions in the spirit of saving the environment. The company can also improve its logistics and ensure that its customers and clients receive their products and services efficiently and at a good time.

Q6. What should the company do in the short term? In the long term?

The company should acquire new start-up technology companies based in Asia and Africa in the short term. The companies are low-cost and will enable the company will use these companies to venture into the technology field eventually. They should also consider reducing excess cost and excess materials and returning the materials to the customers. The company should also focus on the JIT philosophy, which advocates the elimination of waste by simplifying the production processes. This is where the company can involve the use of solar energy in the production process to avoid wastage. The company is growing, and in the long-term, it should consider the use of outsourcing as a strategy to maintain the continued growth of the company globally. Outsourcing will help the company reach the markets or has not reached yet faster and at a lower cost.

References

Agyabeng-Mensah, Y., Afum, E., Agnikpe, C., Cai, J., Ahenkorah, E., & Dacosta, E. (2020). Exploring the mediating influences of total quality management and just in time between green supply chain practices and performance. Journal of Manufacturing Technology Management. https://doi.org/10.1108/JMTM-03-2020-0086

King James Version Bible.

King, D.R., Schriber, S., Bauer, F. and Amiri, S. (2018), “Acquisitions as Corporate Entrepreneurship”, Finkelstein, S. and Cooper, C.L. (Ed.) Advances in Mergers and Acquisitions (Advances in Mergers and Acquisitions, Vol. 17), Emerald Publishing Limited, Bingley, pp. 119-144. https://doi.org/10.1108/S1479-361X20180000017006

Luo, Y., & Tung, R. L. (2018). A general theory of springboard MNEs. Journal of International Business Studies, 49(2), 129-152. https://doi.org/10.1057/s41267-017-0114-8

Nambisan, S., Zahra, S. A., & Luo, Y. (2019). Global platforms and ecosystems: Implications for international business theories. Journal of International Business Studies, 50(9), 1464-1486. https://doi.org/10.1057/s41267-019-00262-4

Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2021). Designing and managing the supply

chain: Concepts, strategies, and case studies. (Third edition.). New York, NY: Richard D.

Irwin, Inc.