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Flextronics Case Evaluation Team Member: Kerry Cunningham, Feng Hu, Tian Tian, Shuo Zhang November. 5th 1 . Cause of McCuster’s Dilemma Several organizational elements haves written for McCuster’s problem: First, the Flextronics’s decision makers did not appropriately measure the ability and condition of the business in putting in a bid for Xbox 360 system project and assigning jobs.

While it can be enticing that the project might bring about great reputation and also substantial profit, decision-makers must look into more than economic benefit1.

Managers are paid to make great decisions certainly not risky decisions or traditional decisions1: Flextronics decision producers was too optimistic regarding the job so that they promised Microsoft the IT solution Flextronics did not have yet despite the fact that it was Flextronics 1st global job and first foray in sophisticated software. This assure has place Flextronics in risks seeing that now it has trouble picking out the THIS solution.

Though group and external stresses (social, politics, economic) influence the alternatives we select and biases we have in decision-making1, in Flextronics case, Flextronics may gain revolutionary and great fame in the succeed with the project, and several parties are closely seeing this task, decision makers still needs to be aim when making decisions While Xbox project requires the two establishments designated to work tightly, decision creators assigned the project to Mexico center and Hungary facility, two groups which can be both geographically and relationally distant.

This decision has led to ineffective connection between the two facilities. Second, Flextronics’s CEO’s over tension on traditions decentralization and the fact that Flextronics’s acquisition generated culture acquisition caused insufficient communication1 and trust1 among facilities. Lack of Communication has led to different systems in two facilities. Both the plants function separately and also have their own individual cost control, this leading to conflict about which program to adopt.

In the event the Hungary facility has disseminated with the headquarter about which usually system to take on in the first place, the headquarter may possibly have recommended Hungary service to adopt Datasweep like Mexico facility do, and Flextronics would not have this dilemma at all. Now that the facilities are having problem in switching system, they still usually trust each other’s program, they are also unwilling to communicate with each other about the system. This lack of trust and connection has made worse Flextronics’s scenario. 2 .

Requirements in Decision Evaluation One of the most prior requirements in decision evaluation is actually the ultimate decision enables Flextronics to make earnings in the long run. As profit permits enterprises to survive and developlast. Profit is likewise the reason for the establish income oriented corporations. However , in individual jobs such as Xbox 360 project, the priority may be developing innovative and enhance reputation rather than financial gain, yet this task would be valueless if it are unable to bring about financial benefit in the long run.

The second most critical criterion is usually customer satisfaction. In such a case, customer satisfaction means whether Flextronics produces Xbox 360 in good quality, right variety, with reasonable price, and timely method. Flextronics also needs to meet Microsoft’s requirement in system adoption and creation control. While Microsoft is an important customer plus the project’s accomplishment could bring about substantial benefit for Flextronics, it is important to stick to the deal with Microsoft company. Another important qualifying criterion would be perhaps the ultimate decision leads to very good team function.

Now that the Hungary service and South america facility possess inconsistency in production and refuse to compromise, decision manufacturers need to develop a solution to involve the two facilities in close cooperation, which is the key to success in launching Xbox 360 in two markets at the same time. As good teamwork in Xbox would bring about enhanced work efficiency and good example for future projects, it is vital for decision makers to let the two facilities willingly reach an agreement. a few. Actions to Take To be able to satisfy the criteria mentioned above, Mr. McCusker is going to take the following activities before this individual reaches a decision.

First of all, to make sure the corporation can benefit from this kind of project, he need make comprehensive research on every element including costs, potential earnings, customer satisfaction and future influences on business of all individuals three feasible scenarios. The first decision alternative is putting Datasweep in the two Mexico and Hungary. This fits to both the viewpoint of Draw, the CEO of Flextronics and the requirement of Microsoft. In addition, Datasweep is a scalable remedy over Visual Factory, as a result facilitating upcoming projects on a global look at.

On the other hand, the charge is a big problem. Besides, the uncertainty to use the new system may disorder the normal procedure for Hungarian for a time period. Well, decision-makers should consider more than financial benefit1. As this is a global project, McCusker should notice it as a whole. If this solution does meet the criteria of the firm, those two branches ought to share the overall cost and profit. Furthermore, the Mexico factory will need to send a lot of engineers whom are familiar with Datasweep to Hungarian to make it operate well as soon as possible.

Since the Xbox will be built first in Mexico, there is nonetheless some time to get Hungary to take on the new system. In this case, Flextronics will become a lot more global-orientated and get ready for great future projects. However , there exists still a few uncertainty exists, because the management team in Hungary can be self-important. They can be quite reluctant to switch and would simply do so if the CEO instructed. They may incorporate some psychological issues which will have bad effects on having on the project. The second you are to set up Visible Factory in Mexico.

It can save a lot of cash, which is a serious problem in this sector. This system continues to be well self-customized by the Hungarian team plus they believe that they have already discovered and fixed most of the insects. But the fatal defect is the fact Visual Factory has no trustworthiness outside of Hungary. It is extremely hard to convince Microsoft as well as the executives and IT crew of Flextronics to trust this new program. Moreover, as a result of build of Xbox beginning with Mexico, period is another essential issue. The 3rd option is usually allowing every branch uses their own computer software. This will profit both vegetation without any risk.

Nevertheless, there is also a fatal drawback of this option that is it can barely meet the simple requirement of Ms for a sole software program. What’s more, that lacks global synergies which is a buffer for Flextronics to develop over time. The second actions McCusker should take is conversing with Michael Represents, the CEO of Flextronics, putting all three options and everything the pros and cons of those according to the comprehensive analysis and asking for his advice and in many cases help. In this case, this is certainly needed, even though it is not suggested to refer to boss intended for help.

Because this is a global project which in turn need close cooperation in the big two branches, really hard intended for McCusker, the project administrator, to deal with all those senior professionals. Furthermore, Humphrey Porter, director of Central Europe, and the lads even believed that they would switch to Datasweep only if Michael jordan Marks question to do so while an buy. In this case, with no approval of Michael Markings, it’s pointless for McCusker to reach any kind of decision. The 3rd one is to hold a conference with all the key people including Humphrey Porter, Shiny Ryan, Rick McCusker, Mike Webb, Robert Dykes and Michael Markings.

Because one of the greatest problems of Flextronics can be lack of communication, this seminar will help individuals key persons in this task to know the case better and create trust and familiarity among them1. After they consider and discuss all of the pros and cons of each and every option one on one without any interaction barrels, they stand a great chance to succeed in an optimum decision. A good teamwork among different branches would also benefit a whole lot for the future progress Flextronics as a global business.