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Flexit Final

Here are 5 suggested future actions for Flexit: 1. Address the current quality issues by replacing or repairing all defective products in Europe, even if costly, to regain customer trust. 2. Establish a European service center long-term to handle repairs under warranty and receive customer feedback. 3. Hire a crisis management expert to develop a response plan and resolve current issues with the distributor. 4. Implement a robust quality management system overseen by a dedicated quality manager to prevent future defects. 5. Develop a network of multiple distributors in Europe and tools to regularly monitor each distributor's performance.

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Ahmed Magdy
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605 views

Flexit Final

Here are 5 suggested future actions for Flexit: 1. Address the current quality issues by replacing or repairing all defective products in Europe, even if costly, to regain customer trust. 2. Establish a European service center long-term to handle repairs under warranty and receive customer feedback. 3. Hire a crisis management expert to develop a response plan and resolve current issues with the distributor. 4. Implement a robust quality management system overseen by a dedicated quality manager to prevent future defects. 5. Develop a network of multiple distributors in Europe and tools to regularly monitor each distributor's performance.

Uploaded by

Ahmed Magdy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Flexit International

Teamwork
Ahmed Magdy – Facilitator
Islam Mohamed – Reporter
Mohamed Abdel Raouf
Mohamed El Sayyad
Yara Ashraf

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Question 1
In light of the results of flexit’s attempt to penetrate the
European market, do you believe that company was
wrong in even considering international expansion?
First
International expansion is a dream and aim of any
ambitious company, as this leads to increase in their
revenues and market share in their existing countries, but
this has to be done on strategic basis, good planning and
good study of the new market requirements.

But
- There was no good plan form the start on how to meet the
required needs and increase the production level in the
plants.
- there was no good research on European market needs.
- No good plan on how to enter the European market.
- No Consultation of expert people in the European market.
- No quality control program.

Therefore

Flexit's attempt to penetrate the European market was wrong


at that time.

Ali Baba
Question 2
What additional information would you like to have had
before making the decision to enter the European
market?
Information Needed

01 02 03
Customer Needs Competitors in the Supplier’s
based on market European market capabilities
research

The non-reliable suppliers production


forecast of the sales The lack of information capabilities to meet
that was not based on about the competitors such increase and put
market research and their level of an appropriate
reflected on that - prices and quality alternatives to meet the
compared to the prevent the company to need of raw material
forecast –there was an put a valid penetration increase in the same
increase in sales of strategy (Differentiation level of quality of
some products and or cost leadership) exciting level of
decrease in others. production.
Information Needed

04 05
Manpower planning SWOT Analysis for
the new strategy

The information that


The quality of any can be obtained from
processes is side by the SWOT includes, in
side for the quality of addition to the above
manpower who information, the
implement those difficulties expected to
processes. The be challenged and the
company should study opportunities available,
the needs of manpower as well as information
and required training on the areas of
before deciding to weakness in the
extend the production company to work to
to a second work shift. confront them and the
areas of strength to be
preserved.
Question 3
Briefly identify the marketing, production, and logistics
decisions that were incorrectly made by Flexit
management.
Marketing
- Depending on Mr. Sellem who has no international experience to plan for
aggressive international market penetration plan.
- Again, the bases for adopting direct sales export was unclear, and it isn’t
based on a solid market research or internal experience in Europe.
- What is the marketing mix (4Ps) for the different product line, as per the
distributor , a penetration pricing strategy was adopted, that probably
mean less prices than competitors , does less price also mean less
quality than the standard Flexit product?
- Depending on sole distributor meant the whole product performance in
the market will be dependant on the distributor performance.
- When crisis happened, there wasn’t any clear crisis management
strategy, only firefighting ,and wait and see , which doesn’t match with
the original aggressive penetration marketing plan.
- No efforts to align with the distributor regarding the responses/ feedback
or further strategy, just adopting the distributor point of view.
Skipping normal production steps and
releasing products without testing shouldn’t
be a option under any circumstances, a
Production
standard process should be followed all time.

Perceiving goals without checking


shouldn’t be basis for decisions like
quantity quality.

Overall, there doesn’t seem to be a clear


understanding for the decision ladder in
production.

Example:

1. Safety 2. Quality 3. Production.


The production plan “intensive ones” are set with very short notice , without proper
alignment and consideration to the plants production trends and capability.
Logistics
People perceived that timelines and quantity is more important than quality.

Poor planning led production team skip steps in order to meet plan targets.

It is not clear whether the defected part supplier is a new one or not? The defect
seems to affect whole batch, and even with skipping testing, without any historical
record for failure before that seems very exceptional, or was there a lot of rejections
that weren’t probably analyzed? Also, samples from all parts should be tested prior to
production release (regardless of the end product testing).

For such important shipment and batches, adequate spare parts should be kept
in inventory even if JIT plan is adopted for routine production.

The sole distributor had no spare parts available.


Question 4
What components and consideration should have been
part of the international marketing plan developed by
Flexit?
Components of the international marketing
plan
1 2 3 4 5

International marketing International marketing SWOT analyses to The estimated Rescheduling the
plan shall include the plan shall include the identify the requirements of the QC production process
expected sales volume estimated sales volume weaknesses and and testing department considering the
instead of predictions / each items to develop threats and to develop to meet the increase of shipment time, which
or management inventory plan for risk management plan production resulted was not exit on the
opinions. products components accordingly. from the international local market.
appropriately. expansion in the
We can see the actual
sales volume had been European market.
doubled from 10%
expected to 20%
Actual.
Question 5
What will be the suggested future 5 actions for Flexit?
Future actions
Assign trusted and certified service center in Europe to repair or replace the defected
01 products whatever the cost. (short Term)

Establish or license service center for repair of guaranteed products and receiving
02 customer complaints. (Long Term)

03 Assign expert of crisis management to deal with the current situation.

04 Establish an effective quality system with an expert quality manager.

05 Dealing with more than one distributor and have a follow up tools of their work.

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