Identify and explain the problems, challenges, and some of the major factors: Wh

Question

Identify and explain the problems, challenges, and some of the major factors:

What are the fey factors that the company should think about which could have an impact on the situation ?

List the possible solutions to the situation

REV: IUNE 23 ROBERT G. ECCLES GEORGE SERAFEIM BEITING CHENG Foxconn Technology Group (A) At four o'clock in the morning on January 23rd, 2010 a 19-year-old young worker jumped from building at a factory in Shenzhen, a Southern city in China. Sixteen more suicide attempts followed the same place within a year, and the death toll totaled 14 by the end of May.1 The string of suici immediately sparked a debate in Chinese society and intensified scrutiny of the working and li conditions of low-skill workers in China. The factory was operated by Foxconn, a leading electroni manufacturer that supplied Apple, Hewlett-Packard, and other world-known brands. Foxconn w under heavy criticism for alleged harsh treatment of its employees and hard pressed to raise wo pay Electronics Manufacturing Services (EMS) Industry Electronics Manufacturing Services (EMS) providers, also referred to as Electronic Contrac Manufacturing (ECM) providers, manufacture products for Original Equipment Manufacturer (OEMs) as strategic supply chain partners. While OEMs mainly designed and distributed the products under their own brand names, some EMS providers were now expanding their serviceto include these functions (Exhibit 1) The global EMS industry dropped marginally from $223.06 billion in 2008 to $221.10 billion in 2009 (by 0.9%) and was expected to recover in 2010 and 2011 and stabilize over the next decade at an average annual growth rate of 8%. The Asian region, which accounted for about 60.8% of total EMS revenues in 2009, was expected to grow at 8.5%, slightly faster than the global market. India, Vietnam and Malaysia were all emerging EMS destinations and, in particular, were capable of potentially encroaching on China's market share.3 In this highly competitive environment, companies operated at very thin margins. Hard to differentiate themselves from the competitors in terms manufacturing and quality certifications, EMS providers generally competed on the basis of price. Adopting Michael Porter's Five Forces Model (Exhibit 2), the bargaining power of both suppliers and customers was high. On the customer side, OEMs enjoyed the advantage of a growing number of choices of EMS partners, thus constantly increasing price pressures. On the supplier side, EMS providers were often constrained to select among a limited list of vendors that were approved or recommended by OEMs. Edi Jianto, general manager at Flextronics Electronics Technology, a top player in the EMS market, estimated that multinational OEMs could earn a gross profit margin of 60% while Chinese contract manufacturers had an average margin of only 3% (Exhibit 3) m, and HBS Doctoral Student Beiting Cheng prepared this case. This case was developed from d solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of Professors Robert G. Eccles and George Serafei primary data, or illustrations of effective or ineffective management

Explanation / Answer

Here we can understand fax conn technology group a manufacturing company this is locating in china

it is abig company they are recieving orders from reputed brands eg:apple..e.t.c

here main problem is labours are not satisfied.the company pay less for labours and working conditions also not good .so some labours are trying for suicide and some are fighting with managers.

any way lobours are very important they are humanbeeings they are not a mechine.faxconn must want to provide good remuneration to thier labours.

solution

the main problem is some time the company take zero profit from clients .it is not good for any companies must want to catch decent profit.misusing labours ethically not good the company must want fit in a society they must want to full fill their corporate responsibilities

Workers who step out of line can be publicly humiliated, it is alleged. "When a worker makes a mistake, when he talks or laughs loudly, he will be humiliated," a production worker said. "Sometimes you have to stand like a soldier in front of everybody. It is a loss of dignity and means an extra pressure for the worker.

In Shenzhen and Chengdu, the workforce knows only too well that such conditions can all too often lead to despair and, last summer, to tragedy.In a statement, Apple said: "Apple is committed to ensuring the highest standards of social responsibility throughout our supply base. Apple requires suppliers to commit to our comprehensive supplier.

here mainly they are recieving too much orders from different companies some time they are offering zero profit to their clients .this all pressure they are putting to workers.

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