Managerial Accounting Case Analysis 3

Case Analysis 3
Stephan Abuzeide
GM 598ON Session B

1. The strategic returns to Microsoft using Flextronics to build the Xbox was they did not have to worry virtually the additional cost of opening manufacturing centers around the world, hire a lot more employees, and it allowed them to focus on their specialty. They are not a hardware company. They specialize in software development. It allowed them to not have to put a lot of cartridge holder and gold into hardware research and development. Also, Flextronics already had a good assume for hardware production, so Microsoft did not have to spend silver on finding a manufacturing plants and searching out able real estate. Al they had to do was pay Flextronics to take explosive charge of all of those details.
2. Microsoft had quite a few issues that could have caused the Xbox shed to end in disaster. One issue was in purpose the Xbox. The way they solved this problem was to work to go badher to keep up up with the perfect design. Another issue was the cost of manufacturing. By going with Flextronics production could be moved to less high-priced locations, and that would save Microsoft money. Microsoft also needed real time updates on production, and wanted to be able to give Flextronics real time updates on demand.



They were able to pull this off by set some of their employees in Flextronics home office, and vice versa. Finally, they could have gone with a new company who could do it cheaper, but there would have been no guarantee that they would create the Xbox to Microsofts standards. By going with Flextronics they already had a good working relationship, and this was a way to strengthen it, and get a better product.
3. Flextronics industrial park strategy helped because vendors were staged right by the plants, so they could control the amount of time it would take to get portion parts. Also, because all of the campuses were set up like this if the cost to cook up at one site went up, they could seamlessly move to a...If you want to get a full essay, order it on our website: Orderessay



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