Strategic Shift for Xenia Case Analysis

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Strategic Shift for Xenia Case Analysis I. Major Facts The Vignette entitled: A Strategic Shift for Xenia, describes that in 1998, Xenia was the leading producer of transducers worldwide. At that point, the company took pride in its marketing strategy, product innovation, and assembly excellence. In 2002, Xenia’s Asian competitor produced and was selling its transducers for what it cost Xenia to produced comparable units. The success of Xenia’s Asian competitor posed a threat to Xenia’s return on investments. II. Major Problem The myriad of problems facing Xenia can be traced to two causes. The establishment of a supply management as an executive position within the organization and the company’s lack of strategic alliances with preferred suppliers. Xenia must change their corporation strategy to a new set of core competencies to defeat the competitive threat set forth by their Asian competitor. III. Possible solutions/Alternatives A. The management of continuous flow of materials to production lines, final product cost/quality, and critical information among suppliers, organization, and the needs of the end customer is the foundation for the supply chain management establishment as a core competency within Xenia’s corporation strategy. Most importantly, the placement of the Supply Manager function within an executive position will enhance the firm’s total performance as it influence the decision-making process inherent in the procurement of adequate materials, services and equipment. The advantage of the Supply Manager’s function at the executive level within Xenia Corporation is driven by the following factors: the procurement of materials and services for the right price and quality, absolute dollar volume of purchases, percent of product cost represented by materials and services, and the types of materials and services purchased. The

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