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Question: Explain and illustrate how Xerox improved efficiency and international
competitiveness.
Case Analysis
Before the Arrival of Japanese firms in the Market:
o Xerox Corporation was a monopoly as it was the only corporation to manufacture
copying machine.
o They were the one who sets the price of the product.
o They didnt pay attention on improving quality, increasing customers satisfaction as well
as reducing the manufacturing cost.
o As can be seen in the graph at the right, there is a little decrease
in quantity demanded for an increase in price.
o In 1970, the Japanese firms came into the picture which targeting the lower end of the
market and offering better copiers at lower costs.
o Japanese firms positioned themselves to move up the more profitable mid and high-end
segments of the market.
o Xerox finally got alarmed about the seriousness of the Japanese threats and starting to
lose their shares.
o Xerox begins to implement steps in regaining its market.
2.
It is important that employees are involved or have knowledge about whats going on
the organization in order to increase their commitment on the organizational success.
Employee involvement was based on the following practices:
o Sharing information to one another.
o Increasing the knowledge of the employees about the operation and activities of
the company.
o Giving rewards to the best performance an employee have done.
o Redistributing power within an organization, putting labor on more equal footing
with the interest of management by letting workers be represented by a small
group of employees who actually participate.
4. Reduction of cost on suppliers and inventories
Working with a smaller group of suppliers who understands the needs of your
business and priorities can still be possible to make the business succeed. Use the
suppliers expertise to improve design manufacturability and reduce product cost.
Suppliers may suggest alternatives or different material to produce a specific
design. As a result, the end product may be easier to produce, and if the
production lead time is decreased, you wont need to keep as much inventory.
CASE STUDY 12:
Q1. How does looking from outside the box find ways to improve efficiency?
What does it mean to think from outside the box?
It means that it is to think beyond the ordinary or the obvious. It also means approaching
problems in new and innovative ways; conceptualizing problems differently; and understanding
your position in relation to any particular situation in a way youd never thought of before.
The following may help to stay out of the box and come up with new creative ways to
improved efficiency in businesses:
o It pays to keep an open mind.
- Look beyond the traditional ways of accomplishing tasks. We should always look for a
new strategy that could prove more productivity and improved work efficiency.
o Challenge yourself, and you will grow.
Learning new things and ideas will help in making sense of the things around us. We
should be willing to take new perspectives to day-to-day work.
When an idea comes to you or you see something that you think could be
useful later, don't hesitate to save or jot down it.
Avoid the negative attitudes like fear of failures which may hinder or
discourage a person to aim for the best.
Go to a place where you can encounter different kinds of people and share
ideas with them to learn something new.
Q2: How does efficiency result in unit cost reduction in this reading?
Efficiency is about making the best possible use of resources. An increase in
productivity without any increase in cost means that the firm has improved
efficiency. Efficient firms maximize in producing outputs out of the given inputs
without affecting its cost. By improving efficiency, a business can reduce its costs
and improve its competitiveness.
Tomorrows Factory
Q1: Compare and explain the average lost curves of todays and tomorrows factory.
Todays Factory focuses on producing different products. It has large factory enabling the
workers to manufacture easily. It employs for about 1,200 workers.
Tomorrows Factory focuses only on producing one or a very few related products. The
factory is generally small which limits the production. It gives employment to 400-600 workers
only. It will be located closer or exposed to potential customers for them to entice to buy the
products. The factory of the future will be incredibly efficient which has 100 times more
productive workers.
Q2: Explain each of the factors that will affect unit lost and capacity of tomorrows factory.