Latin American Factory Start-Up Harvard Case Solution & Analysis

Value

When the company adopts cost leadership strategy, it can provide more benefits to the customers with improved quality standards. It provides value to the customers because the company offers lower cost. Competitive prices are the best way to generate the profit in the long term.

Flexibility

Cost leadership also provides flexibility to the company when the buyers are powerful. If the demand of the buyers based on improved quality standards, then it is beneficial for the firm to manage it without affecting on profitability.

Barriers

When the company is having a cost advantage over the competitors, it may dominate in the market by restricting the new entrants to enter into the market. However, if still, new entrants desire to enter into the market, they need significant capital investment in order to compete with the price and the quality of the leading market player.

Supply Chain

When the firm’s having cost advantage, it also facilitates in supply chain activities. The firms can get a cost advantage by emphasizing on quality and reduce the cost element in the supply chain process. It is also a major threat to the competitors that would design their prices to compete in the industry.

Choice

Cost leadership strategy has various benefits to the firm to compete in the market. The firm has several strategies available, to choose such strategy that helps in adding value to organization is called optimal strategy. Setting the prices against your competitors to increase the market share is relatively easy. It also provides an opportunity for the firm to invest in multiple activities to take an advantage of cost leadership.

Recommendations

Intel should implement training and development practices within the organization keeping in view the lack of training and development activities for the site operations in Costa Rica. Training and development practices not only provide benefits to the Intel in factory operations, but also helps in improving the entire performance of the employees. When the employees get the training, then they will better perform their work. Employees are better informed regarding the safety policies and practices for the operations. Training also gives confidence to the employees because they are better informed regarding the industry. The more the employees feel confident, the much better they performed their duties for the betterment of the organization. Intel should continuously focus on training, it also sets a benchmark for the employees of industry developments that will also facilitate the Intel in a positive manner. Training and development practices also ensure a competitive advantage within the industry due to the competent employees.

Training and development practices facilitated the organization in the form of experienced, knowledgeable and technically sound personnel. When Intel will adopt training and development practices on a consistent basis, employees will be better informed of the procedures within the company. Training and development practices give advantage to the employees as compared to the employees of other companies and will play a vital role in the success of the organization. Intel should invest in training and development to motivate the employees to improve the performance standards in the workplace. Training and development encourages the employees to actively participate in the business operations. Intel will be benefited from the training and development in a several ways. It will increase the employee morale and level of job satisfaction, this will give a positive message to the potential employees as well. The employee motivation is directly related to the productivity and employee turnover. Training and development practices ensure the better understanding of the job responsibilities and decrease the employee turnover. Intel should practice training and development practices within the organization as it will bring new ideas and suggestions from the employees in business operations.  Hence, in order to achieve set targets in coherence with in the limitations of resources the company should enhance the employee’s motivation scale by conducting economic training and motivational campaigns.

Expected Results and Rationale for the Solution

Training and development will be vital for the company to operate in Costa Rica because employees of the company lacked the required expertise for the site operations. Another positive factor that will arise from the training and development is the increase in the employee motivation. Intel will be benefited from the training and development practice in the long run.....................................

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