Zwick Electrical Case Study

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Case Study 2 Zwick Electrical 1. At what stage of global operations are ZEI, ABB, and Siemens? Justify your answer. ZEI is in the beginning stages of global operations. There main focus is still on domestic operations. They have made initial moves by exporting products overseas but focusing only in Europe, this only represented less than 1 percent of ZEI sales. Because management has such little foreign experience, they have hired a consulting firm to get them to the next stage. ABB is a globally integrated enterprise it has it organization divided by products and geography. The have decentralized management of local operations and operate with little or no regard to boundaries. They are operating at stage three of development. Siemen’s AG is in the second stage of international development. Siemen’s remains a Euro centered organization. 75% percent of their sales are in Europe and they operate under parent company management procedures and operations. 2. Beyond a simple sales perspective, why might ZEI want to consider greater international activity? To compete in today’s market place you have to be globally competitive. A few reasons they should consider international activity are; Operating costs can be cheaper operating in low cost countries. You can build stronger alliances and expand your customer base. Additional revenue from overseas sales can lead to more production in US facilities that could create jobs in the United States. 3. From a ZEI perspective what advantages and disadvantages do ABB and Siemens offer? Advantages: By entering into business with the two companies they gain access to ABB and Siemens subsidiaries across Europe, the Americas and the Pacific. They get to rely on established international supply chain practices and route distribution. Also they will be able to find complementary product lines from

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