Free Business Dissertations - A Final Issue That Merits Addressing Is That Of The Future Implications To
A final issue that merits addressing is that of the future implications to the firm if Malaysia operations were to be expanded significantly. Of particular concern to Hypergol is the possibility of creating a de facto drift of all operations to this site.Though this is a potential outcome, particularly if it is a desired outcome, it is also one that does not necessarily have to be the case. Though the operation for this particular line of products may shift, Hypergol is a firm that operates in a wide range of industries with a broad customer base. As such, particularly in a firm such as Hypergol, it is not essentially that they be located anywhere in particular so long as they are accessible to the end customer.
3.) From the information in the case, Hypergol’s strategy is not necessarily the entrance into a new market but a recognition of their own key competencies reconciled with a paying market. As such, it is recommended that they expand and realign human and physical resources of the firm to take advantage of their ability to command a profit on the relative ratio of inputs and outputs of their efforts.
To implement this strategy, perhaps the very first step is a top-down recognition of this a the ‘new path’. From this point, resources should realigned to take maximum advantage of this. As success will be note in the playing field of the marketplace, the strategic direction of sales and marketing is key to getting orders. This should be simultaneously reconciled with procurement and manufacturing so that demand can be anticipated and customer service levels are increased.
With regard to post-sale service, as PLC’s are not as specialized by the manufacturer (as are military or specialized avionic systems), support of customers should require minimal additional effort. This can be further aided by reductions in defect rates. According the data in the case, approximately 20% of the components time is spent in testing dispatch. This seems to be an extraordinarily high figure for which tremendous increases in ‘free’ profitability can be achieved. Even if no new direction is advanced upon, this area remain a source of tremendous waste.
An additional boon to operations is the potential for improvements in lead time and in inventory reductions that would be incurred by the shifting of the firm’s efforts to just two products rather than ‘pushing’ five. Though all could be available, by forecasting the 75% of demand will come from just two products, variance in supply chain time, both coming and going, can be realized.
4.) Hypergol is a foreign manufacturer. The idea that Hypergol is expanding current operations to an place that it already is should not affect US relations. Though it is quite like that US government officials would dearly like to locate a Hypergol plant within their boundaries, such an action would likely have the end result of putting additional costs into product.
Dissertations - Free Business Dissertations
