Foxconn Technology Group Case Studies Example

The Classic Pen Company undertakes the manufacture of the blue and black pen. The company contains issues, some of which that pressed the operations in the past while others press to the present. The issues mostly concern the financial trends in the results of the operations. The firm has not filled an evident gap in the market. Most of the customers have preferences for the pens of unique color, but the company has failed to maintain their production despite the readiness of the customers to pay heavily for the pens.
The company is seemingly small and requires consideration for expansion. In order to start producing pens of a different color, it is evident that there is a prior cleaning of the remnants of the color produced previously. The reason for this action is lack of extra spaces for use in production of distinct products while maintaining the production of the previous products. In addition, it is possible that the firm would encounter a continuation of challenges faced in the past. The company portrays a continued sense of fear despite the introduction of systems of the computer technology in the reduction of such problems. These challenges include backlogged, the determination of the future orders, and keeping the track of the present performance.
However, the firm can overcome the listed issues upon the observation of certain principles at the various levels. The company should identify and research on the customers adequately. Upon the realization of the customer need, the production department should target quality on products. There should be a proper coordination between the sales department and the management of the firm. The company should invest more and aim at the expansion of the company so that it can provide for the production of more than one brands of pen.
The firm possesses strategies under which it operates. One of the strategies entails handling of the production works. In this strategy, there is orders’ production, purchase, preparation, and release of the materials for the production run. The other strategy entails the inspection of the first item that takes place for the change the process. However, each runs begun with small losses that lasted to the moment when the process settled down. These strategies governed the operations of the firm in its undertakings.
The firm succeeds in its operations due to various reasons incorporated in its undertakings. The operations manager lays down well-defined transformation mechanisms between the productions of one color of pen to another. In addition, the firm studies the performance trends of its products in the market and adjusts to the customer demands. The firm projects an improvement in its performance due to the assimilation and utilization of the technology in the operations at the various levels.
However, the success is not always obvious due to the presence of challenges that encounters the company in the operations. The firm encounters expenses when purchasing the technological equipments and when transforming the units of production when changing the pen color. Additionally, the company undergoes expenses in the purchase of energy to operate the machine, the depreciation of the machine and maintenance cost. The rate of the current overhead burden is 300%, which is an increase of 100% from the previous financial year. The firm can respond to these challenges by conducting activity-based costing and cost analysis based on the activities performed. The firm should link the cost of producing new products to the expected revenue so that there is an appropriate adjustment. As such, the firm will register a positive improvement on the financial trends.