SomPack: If You Cant Beat Them Join Them Case Solution

This case considers attempts by a Turkish manufacturer of cosmetics packaging trade quality for cost, in order to compete with the influx of cheap goods from China. SomPack the difficulties encountered by management in their efforts to survive in the face of low-cost China and the credit crunch competition described therein. The company had increased due to the emphasis on quality relationships and customers, but had to reduce costs for the first time in response to foreign competition, and again because of the global credit crisis. The case relates to many aspects of the business strategy: the company’s efforts to automation to reduce labor costs to be executed in the context of its efforts to reduce the quality of the product? parts that had to be automated assembly, the use of less expensive premiums specialized equipment necessary materials, the use of lower costs in connection with its efforts to reduce the quality of products for items that should be automated assembly, the use of less expensive premiums specialized equipment necessary materials, the use of less expensive machines that were not acceptable for customers who need a high-quality manufacturing, implementation issues? performed with a lower cost ERP system, and attempts to outsourcing certain components. The decision to reduce the quality of processes and products should be done very carefully: even if intended to be measures of short-term survival, can create significant short-term shocks out of potential long-term problems, such as making less attractive as a supplier for customers still may prefer the quality and service company costs.
by
Sema Dube,
Manu Dube
Source: Ivey Publishing
10 pages.
Release: September 16, 2010. Prod #: 910M71-PDF-ENG
SomPack: If you can not beat them, join them? Case Solution

SomPack: If You Cant Beat Them Join Them Case Solution
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