The presentation is made as requested in the question. Slide-1 : Presentation Co
ID: 372876 • Letter: T
Question
The presentation is made as requested in the question.
Slide-1 : Presentation Contents
· csm electronics - Company Introduction
· csm electronics and customer relationship
· csm electronics - China Visit
· csm electronics - Expansion opportunity
· csm electronics proposal to their customer
· csm's Customer focus for China Opportunity
· Dilemma for cms electronics
Slide 2 : Company Introduction
· Company - M/s cms electronics
· Managing Director – Michael Velmeden
· Headquarter – Klagenfurt, Austria.
· Product – Design, Manufacture and Sale electronics products
· Plant in Europe (more than 10 years).
Slide 3 : M/s csm electronics and customer relationship
· MD of csm electronics visits to China market along with their customer.
· csm electronics is an existing supplier to this customer.
· csm electronics is a supplier to this customer in Europe market for long time.
· csm and customer have great relation based on past performance of more than 10 years.
Slide 4 : China Visit – Business Development Opportunity
· Customer of csm electronics visiting China market for their business expansion project.
· MD of csm electronics also visits along with customer to China.
· MD of csm plans to explore business opportunity with this customer in similar to their European supply base.
· csm electronics is an existing supplier to this customer in European market for long time.
Slide 5 : China Visit – Expansion Opportunity
Slide 6: M/s csm electronics’s proposal to customer for China Business Opportunity
• MD of csm worked out the solution for the china business model.
• csm electronics MD’s proposed plan
1. Design by csm electronics at Europe set up
2. Manufacturing by third party at Asia as a sub-contractor.
Slide 7 : Customer Focus for China Business Opportunity
• Customer was not happy with the csm electronics plan to support China Opportunity
• Customer do not want the involvement of third part as subcontractor for manufacturing
• Customer decline the proposal of csm electronics
• Customer informed csm electronics for their decision
• Customer is started looking for other option who has manufacturing set-up as well.
Slide 8 : M/s csm electronics’s dilemma for China Business Opportunity
· csm electronics received decline from their customer for China opportunity.
· Csm electronics understand the subcontracting is an issue to customer
· Csm electronics can earn this business by having manufacturing set up in Asia.
· This new set up will j=have high cost impact to csm electronics like company
· csm’s dilemma .
a. Development of own manufacturing set up in new location will have high cost impact to mid size company like csm electronics.
b. csm electronics might lose important customers if they unable to offer required services to their customer’s worldwide locations.
Explanation / Answer
INTERNATIONAL JOURNAL OF CASE STUDIES IN MANAGEMENT HEC Volume Issu June 20 Market Expansion at ems electronics Case prepared by Professor Dietmar STERNAD Michael Velmeden, managing director of ems electronics gmbh,2 headquartered in Klagenfurt, Austria, was just returning from a visit to China with a German customer in the automotive supplier industry. The customer's company had built a new facility in China for which it required the same engineering and manufacturing services for electronic components as cms electronics had previously supplied for its main production site in Europe. The Austrian electronics company had no facility in Asia, however. Velmeden therefore recommended that cms electronics manage the entire project for the customer, including the engineering, but outsource manufacturing to a local service provider. The proposed model had functioned well with another customer. Velmeden and his customer visited two factories owned by the proposed subcontractor, one in Shenzhen and the other north of Shanghai. The customer seemed impressed by the production facilities but somewhat skeptical about the idea of having his electronic manufacturing services (EMS) provider subcontract to a different service provider
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