Foxconn Technology Group (B) Case Study Solution
Introduction
The case represents the self-destruction issues at Foxconn Company inside China and how the organization answers or handles the situation. Foxconn is one global assembling organization of "Taiwanese hardware". It is headquartered in Taiwan, New Taipei, and Tucheng. The company was set up in the year 1947 as the constructor of electronic merchandise. By and by, Foxconn is the greatest constructor in the globe for constructing electronic sections. Clients of Foxconn involve Japanese, European, and American IT(Information Technology) and hardware organizations. The critical merchandise built by Foxconn includes Kindle, iPod, Xbox 360, iPad, and PlayStation 3. The production lines of Fox conn are majorly situated in South America, Europe, and Asia which commonly gather approximately forty percent of client electronic merchandise around the globe. This report represents the international board of HR through the Foxconn suicides situations.
Moreover, slow development rate and the high rivalry in the innovation business drives the organization to confront numerous issues and difficulties. Besides, issues emerge in the organization, for example, brutal working circumstances, low wages of the representatives, no private space, and absence of the right to speak freely of discourse and wellbeing related issues because of the ill-advised work space.
Problem Statement
The case features the issue that emerges when the organization intends to purchase the robots. Individuals, there were so frightened to imagine a scenario in which they lose their employment after the entire arrangement of the robot venture. The case features the Human Resource management issues and issues that emerge after the organization's headway and globalization.
Effects of Globalization on HRM
Globalization connotes an expression in exchange that pass on the consolidation of tactics, procedures, and tasks of any association in unique contemplations, administrations, societies, and products. Globalization has started variety in the overall HRM. Globalization has prominent effects on variety, and hence, globalization furthermore has an exhaustive effect on the way that worldwide organizations tackle their laborers.
Key HRM Issues
Some of the key Human Resource Management issues highlighted in the case study include;
- The case highlights the effects of Artificial intelligence and advancement when the owner thinks to replace the employees with robotics. But on the other hand, if we can go on a deeper length, there are certain disadvantages associated with it as well
- Firstly, introducing and putting resources into several robots at first may upsets the organization's net benefit since it is very difficult errands for the organization to put resources into one million robots right away.
- Secondly, after the monetary issues, the other issue that might emerge is the treatment of the tasks. Dealing with the robots and making things agreeable takes time. It needs steady preparation and coordination.
- Moreover, with regards to the labor force, the labor force after headway should be so talented and created. The employees need consistent preparation concerning getting sorted out the client undertakings and taking care of inventory network issues.
- The company deals with the “cost effective strategy” which is another main issue that may arise after the robot implementation. It might become impossible for the company to maintain its prices after the super innovative progression.
- Another main pressing concern that emerges was the lack of implementation of moral practices. The organization was blamed for coming up short on compensation and having its representatives work exorbitant hours. The moral contemplations are really the most significant for the organization. It is the obligation of the organization to follow the practices lawfully and make things more straightforward for the clients.
- The case additionally features the other significant administration issues, for example, absence of opportunity and initiation issues. The representatives were not giving the agreeable climate.
- Another main issue that may arise includes Employee retention and a higher turnover rate. This may disturb the company’s environment financially and emotionally. Moreover, it may ruin the company’s overall market worth.
Appendix 1 illustrated the overall Key HRM issues faced by the company.
Situational Analysis
The situational analysis of the Foxconn Technology is as follows;
SWOT Analysis
The SWOT analysis is used to analyze the company’s overall strengths, weaknesses, opportunities, and threats. These factors are highly important to understand the company’s internal environment and its market effect. Appendix 2 shows the SWOT analysis. (Chen, 2014)
Strengths
The company is high lighted as dedicated and developed itself in the field of research design and engineering. Its strong motivation helps the company to promote globalization. It has a strong “global footprint” which helps the company to maintain its worth in the market. Moreover, in recent years the company has adopted the advanced Information technology adaptive self-techniques which surely serve as the best competitive advantage for the company.
Weaknesses
Certain weaknesses may be resolved if considered as a future opportunity for the company. The company is highly dependent on Apple Inc. for generally half of its revenues. This may consider a disadvantage for the company's overall self-worth. Moreover, employee retention is another main weakness of the company.
Opportunities
There are several opportunities for the company. The company needs to keep itself updated with the current environmental and technological changes to keep ahead in the market. The company can avail tremendous success by introducing the technological advancement that is highly important these days for the progression of a successful company.
Threats
Several threats may arise during the company’s success. These threats include increased competition from the surrounding competitors. Moreover, technological advancement and political and economic issues are the main features that may serve as a threat to the company.
PESTLE Analysis
The PESTLE analysis is a strategic tool that is useful in analyzing the external environment of the company. It is used to analyze that how the certain environmental factors affects the company and how they impacted it. It is the important tool to analyze and implement those changes that helps the company to gain market worth. Appendix 3 shows the PESTLE analysis of the company.(Khan, 2015)....
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