Unicon supplies pre-cast concrete products to the flourishing market for construction in Hong Kong. Mr. Li, deputy managing director, is evaluating the opportunity to continue the "blanket" of regulatory approval for the custom-designed concrete Unicon's products with its largest customer, Hong Kong Housing Authority. This capability promises to offer cost savings to both Unicon and this client, although questions remain about the wider implications for the manufacturing operations Unicon's and other clients. At the same time, management should develop a plan to expand its manufacturing capacity if Unicon is hoping to capitalize on the rapidly expanding market and fend off new competition from mainland China. "Hide
by Robert Klassen, P. Fraser Johnson Source: Richard Ivey School of Business Foundation 15 pages. Publication date: 17 Feb, 1998. Prod. #: 98D006-PDF-ENG
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