Concept explainers
Case summary: Company T started work in 2003 and specialized in making cars, batteries, and solar panels. The company came up with models costing less than $35,000 which affected the finances and the company suffered losses. The credit rating of the company also went down. The company’s owner and CEO EM stated that manufacturing of model 3 caused many problems as the model had a high defect rate. Company T cannot maintain the production line for the high arising demand. Company T’s production line suffered due to too much automation, as EM decided for many features to be automated. The idea of automation made production even slower. The idea of EM to add robots became more expensive for companies that employees as high professionals were required to program robots. The models failed in markets due to many problems and even were a lot expensive to the company. However, EM disagreed with the critics and said that they will be earning profit in the coming times. EM agreed that using robots was his mistake and he started working as a nano-manager. The direct oversight of EM helped him manage the production line of Model 3. He temporarily stopped the production line of Model 3 and committed to increasing the production. The company added a production shift, hired workers. Critics said that this is definitely not a good idea and will add more pressure on the finances of the company. Considering all the expenses the company made in expenses, the question is whether the EM will run out of cash or not.
To find:The underlying problem from the perspective of CEO EM.
Want to see the full answer?
Check out a sample textbook solutionChapter 16 Solutions
Gen Combo Looseleaf Management; Connect Access Card
- Managers face a key challenge: to simultaneously generate high profitability and increase the profits of the company. Companies that have high profitability but profits that are not growing will not be as highly valued by shareholders as a company that has both high profitability and rapid profits growth. This was the situation that Dell faced in the later part of 2000s. As a result its shares lost significant value between 2017 and 2021. At the beginning of 2017 Dell shares were trading at approximately $27. By the end of 2021 they were trading at about $ 14 though the company was still profitable, Dells shares had lost almost half of their value because it was not growing its profits over time. At the same time managers need to be aware that if they grow profits but profitability declines, that too will not be highly valued by shareholders. That what the shareholders want to see and what managers must try to deliver through strategic leadership is profitable growth. That high…arrow_forwardis IMC dead? Why or why not?arrow_forwardIdentify and explain the main driver/motive for this merger of TPG and Vodafone formed in August 2020, What are the potential benefits to the merged entity (TPG Telecom) and its possible challenges in implementing its post-merger integration?arrow_forward
- Evaluate TTI's progress and situation in 2006. What should it and its investors/directors do?arrow_forwardStrategic issues behind the failure of Nokia company? Please explain briefly.arrow_forwardScenario: Your group is a team of consultants who are experts in assisting organizations that want to set up a virtual asset exchange company. One such hypothetical company called Crypto Alliance Canada has contracted your team to assist in meeting the regulatory requirements to set the operations as a virtual asset exchange company in Canada. CryptoGuard intends to be a platform that facilitates the exchange of various virtual assets, including cryptocurrencies. The company wants to be a leading player in the Canadian industry, and as such the senior leadership of the company is committed to maintaining the highest AML standards while staying compliant with all the regulations, especially the FATF's global AML guidance. Objective: Your team is tasked witharrow_forward
- The CEO of an express delivery service company is contemplating an entry into truck manufacturing through an acquisition. What would you suggest to the CEO? and why? Do vertically integrate. It gives you access to critical resources. Do vertically integrate. It promises monopoly control over your competitors. Do not integrate. Express delivery and truck manufacturing are businesses that require very different competencies. Do not integrate. The transactions costs of buying trucks in the market are greater than the administrative costs of making trucks within the firm.arrow_forwardAfter reading the description, Applying the risk management process, Should Coe's expand to Mexico ? Justify your decision? Why? Or why not ?arrow_forwardRead the following scenario and then answer the questions that follow:In your role as Chief Information Officer of a beverage manufacturer with global aspirations, youhave been responsible for implementing a new Enterprise Architecture (EA) framework that hasseen significant benefits for the business and their IT function. The business is now able to adaptto international competition, while still being responsive to local South African market demands.One of the enterprise systems you are responsible for is an Enterprise Resources Planning (ERP)system that integrates the businesses internal manufacturing, sales and financial processes andexternal supply chain processes.Q.1.1 Describe the benefits of EA and ERP with application to the scenario. Q.1.2 Recommend the use of enterprise data mashups for the manufacturerarrow_forward
- Case One: Facebook Moves into E-Commerce On the social networking site Facebook, users create profiles that allow them to connect with friends, organizations, and companies through posts and ads that appear in their personal News Feed as well as through Pages that are designed to help organizations and companies connect with interested users. And with more than 1.4 billion active users, including 900 million who visit the site every day, Facebook represents a huge potential online marketplace. Over the years, Facebook has experimented with many different features designed to help marketers connect with prospective customers—from banner ads to sponsored links to highly visual engagement ads that allow advertisers to show several clickable images or videos within a single News Feed ad. Although Facebook has incorporated ads for some time, it is now focusing more intently on tools that make it easier for customers to purchase something immediately based on an ad they see—ideally, all…arrow_forwardSuppose Nike’s managers were considering expanding into producing sports beverages. Why might the company decide to do this under the Nike brand name?arrow_forwardContinue In another development in the firm’s evolving e-commerce strategy, Walmart has taken the decision to shutter Jet.com and phase out the brand, three years after splashing out $3.3 billion to acquire the start-up. This had been rumored for several months, with Walmart already divesting itself of smaller e-commerce gambits, such as ModCloth and Jetblack. But Jet.com was the biggest bet that Walmart made and one that brought Marc Lore into the larger firm as head of the e-commerce division in the US. McMillon says now that there are no regrets about the decision to buy the firm:The Jet acquisition was critical to jumpstarting the progress we've made the last few years. Not only have we picked up traction with pickup and delivery, but our walmart.com non-food e-commerce growth accelerated after the arrival of Marc and the Jet team. He leaned into the Walmart brand quickly.But that parent brand is the priority, he adds:While the [Jet] brand name may still be used in the future, our…arrow_forward