Foxconn Technology Group (A) Harvard Case Solution & Analysis

Question 1

What is Foxconn’s business model? Is it sustainable? Why or why not?
Foxconn’s Business Model

Foxconn Technology Company is the biggest and the fastest growing multinational company in the EMS (Electronic Manufacturing Services) industry. The company offers an extraordinary collection of abilities in the design of components that helps it to provide one –stop- shopping solutions ranging from the design and manufacturing to the logistics, repair and maintenance throughout the world. Furthermore, the company provides the joint-design, joint-development, manufacturing, assembling and after sales services to its upstream partners. The company not only makes products for Apple, Nintendo, HP and Motorola but they also manufactures cell phones for Nokia, PlayStation 2 sets for Sony along with the computer parts for Dell. In addition to this, Foxconn is committed to provide the lowest “total cost” solutions to its customers. However, Business model of the company supports the total cost benefits for all the customers, in order to make the availability and usage of electronic products achievable reality for its customers.

The business model of the company focuses on the high level satisfaction of its customer’s. This means that the business model of the Foxconn Technology is more customer focused rather than  focused on the profits. Moreover, the most important factors of the Foxconn business model include the speed and quality of the services, technology, flexibility, and cost effectiveness. These factors have proven sustainability of the Foxconn that is important for the company in order to constantly grow. The Foxconn Technology Company is also committed towards the greater social harmony and ethical values of the company in order to accomplish a winning model for all the stakeholders that includes the employees, community and the management of the company.

Yes, it is sustainable as the company is more customer focused instead of the profit and may remain sustainable as long as Foxconn continue its focus on the customers’ needs and wants. The Foxconn Technology Company has put a greater importance to meet the expectations and increase the satisfaction level of the customers. Furthermore, the company should constantly focus upon the excellence of the products and services offered to the customers rather than keep their focus on the high cost in order to be sustainable. As the core competitive benefit of the company is based on the low price offerings that also helps the company to persist sustainable.

Question 2

What is the profile of Foxconn workers? Why are Foxconn jobs in high demand?

Foxconn Technology Company and its subsidiaries had around 800,000 employees from which more than half were employed in Long Hua Science and Technology Park. In order to take the advantage of the low labor and land costs in china, the company set up its first factory in 1988.The average age of the Foxconn worker was 21.1 years with the youngest being just 15 years old. Most of the workers of the company had immigrated from the provinces of the country such as Henan; Hunan and Hubei were the three top cities of the original residence. Among the Foxconn Technology Co. only a few employees had obtained the education beyond the high school. Additionally, the workers who were the graduates of the colleges were paid substantially higher as compared to those workers who belonged to the lower educational background. The majority of the workers employed at the assembly lines were low skilled workers.

The jobs at Foxconn Technology Company were in high demand because thousands of workers preferred to join Foxconn as against the other smaller manufacturing companies. Secondly, Foxconn Technology was one of the best places for low skilled employees to be employed at. The workers also received their wages on time as compared to the other small manufacturing companies which frequently failed to pay their employees on time. Employees of Foxconn Technology were also provided with the legal contracts that include subsidies for housing, meals, insurance and they could also live charge free in the company dormitories.

Question 3

What is happening at the country level? Given the broader institutional context, is this Foxconn’s fault?

The population of the china is continuously growing at the annual rate of about 14 million people a year which has created a need for new jobs in China. The country needs to overcome the pressure of job creations for their growing population as many people are expected to enter the workforce in the coming years. The international manufacturing businesses are attracted by  lower labor costs and other business potential in for operating businesses from China, including Foxconn Technology Company, which results in creation of the employment opportunities. On the other hand, the labor practices in china are poorly structured and imposed.

The larger proportion of the workers who have migrated from other provinces are low skilled and low paid workers and this represent...................

Foxconn Technology Group (A) Case Solution

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The case describes the challenges faced by Foxconn after a series of suicides occurred at the factories. In response, the company Foxconn presented and the related impact on the share price of the company Foxconn discussed. "Hide
by Robert G. Eccles, George Serafeim, Beiting Cheng Source: HBS Premier Case Collection 21 pages. Publication Date: July 11, 2011. Prod. #: 112002-PDF-ENG

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