L11 Case studies Quiz

What criteria drove Amazon's decision of where to produce the different components that go into the Kindle? Were these the right criteria?

• The criteria included cost efficiency, supply chain logistics, skilled labor access, and scalability.
• The criteria included cost efficiency, supply chain logistics, skilled labor access, and profitability.

• Consumer feedback surveys
• Market demand analysis

Some have argued that the fact that only $40-$50 of the value associated with manufacturing the Kindle goes to U.S. companies is a sign of the decline of American competitiveness. Do you agree with this assessment?

• No, it shows that global supply chains are beneficial.
• Yes, but it reflects a shift in manufacturing rather than decline.
• Yes, it indicates a decline in American competitiveness.
• No, it demonstrates the strength of American innovation.

If Amazon had decided to design and manufacture the Kindle and all its components in the United States, what do you think the consequences would have been for Amazon?

• Lower production costs and increased sales volume
• Lower production costs and retail prices, reduced sales volume, and potential loss of market share.

• Higher production costs and retail prices, reduced sales volume, and potential loss of market share.
• Expansion into new international markets

What was the strategic advantage to Microsoft of outsourcing Xbox production to Flextronics?

• Increased market share in the gaming industry.
• Enhanced brand loyalty among consumers.
• Access to advanced gaming technology from Flextronics.
• The strategic advantage was cost reduction and increased efficiency in production.

What were the risks associated with outsourcing to Flextronics? Did Microsoft mitigate these risks? Do you think Microsoft would have been better off making the Xbox itself?

• Yes, Microsoft faced risks with outsourcing to Flextronics, but they mitigated some of these risks. But making the Xbox in-house is not a smart move.

• Yes, Microsoft faced risks with outsourcing to Flextronics, but they mitigated some of these risks. Making the Xbox in-house might have been a better option.
• Outsourcing to Flextronics was the only option for Microsoft.
• Making the Xbox in-house would have increased costs significantly.

How did Flextronics' industrial park strategy enable the company to respond to national changes in relative factor costs?

• Flextronics' strategy focused solely on increasing production capacity.
• The industrial park strategy limited Flextronics' ability to relocate production.
• Flextronics' industrial park strategy enabled quick adaptation to national changes in relative factor costs by allowing production shifts to more permanent locations.

• Flextronics' industrial park strategy enabled quick adaptation to national changes in relative factor costs by allowing production shifts to more cost-effective locations.

How important are Web-based information systems to the relationship between Microsoft and Flextronics? What are the economic advantages of real-time information flows between Microsoft, Flextronics, and Flextronics' own subcontractors?

• Web-based information systems are crucial for collaboration and efficiency, providing economic advantages like reduced lead times, improved inventory management, and enhanced decision-making through real-time information flows.
• Web-based information systems are crucial for collaboration and efficiency, providing economic advantages like reduced lead times, improved inventory management, and delayed decision-making through laggard information flows.

• Real-time information flows increase lead times and complicate inventory management.
• Web-based information systems are irrelevant to Microsoft and Flextronics' operations.

Is it right for MMC to hold Ross to the same performance goals as managers of units in other countries? What other approach might it adopt?

• No, it is not right for MMC to hold Ross to the same performance goals; a tailored approach considering local conditions would be better.
• No, it is not right for MMC to hold Ross to the same performance goals; a tailored approach that provide him with the best salary would be perfect.

• A one-size-fits-all approach is best for performance evaluation.
• Yes, Ross should be held to the same goals as others.

Why had bringing specialists from the United States not worked at MMC? Why did Ross's strategy of sending Chinese employees over to the United States for training produce better results? What are the lessons here?

• Bringing specialists from the United States improved communication skills among employees.
• Chinese employees were already familiar with American business practices before training.
• Ross's strategy focused solely on technical skills without considering cultural differences.
• Ross's strategy of sending Chinese employees for training produced better results because it combined skill acquisition with cultural understanding, leading to more effective implementation.

What changes could the HR department at MMC make to improve its utilization of human capital and facilitate knowledge transfers within the company?

• Reduce employee benefits and incentives.
• Implement mentorship programs and enhance training initiatives.
• Increase the number of hierarchical levels in management.
• Limit access to training resources.