Purchase Solution

Economic Case Study - Universal

Not what you're looking for?

Ask Custom Question

Economics - Summary
The economics involved in the make or buy issue were unusually complex. In 1982 the manufacturing facilities that were required to make a meaningful volume of semiconductors for Universal would have cost in excess of $50 million. There was concern about Universal's ability to run a high-tech semiconductor facility effectively and efficiently. Further there was the issue of culture. Would the semiconductor industry culture mesh? It became apparent that a decision to manufacture integrated circuits (ICs) was a very high cost strategy. It was likely that the resulting ICs (manufactured by Universal) would cost two to five times as much as purchased ones. However, management felt that the cost penalty might be a sound investment in quality and technology and give Universal a significant competitive advantage.

QUESTIONS TO THE CASE IN THE ATTACHMENT:
1) What are UMC's six strategic concerns?
2) Develop a one-sentence statement of the problem confronting UMC in this case?
3) What alternatives are available to Universal?
4) What are the advantages and disadvantages of each?
5) What action do you recommend?
6) if Universal were to buy all or a portion of the semiconductors from one or more outside suppliers, what specific characteristics must such a supplier possess?

Attachments
Purchase this Solution
Solution Summary

This solution is provided in 467 words. It discusses the problems facing Universal and what solutions could occur to improve the company's manufacturing and supply process.

Solution Preview

QUESTIONS TO THE CASE IN THE ATTACHMENT:

1) What are UMC's six strategic concerns?

Looks to be the big one is just-in time manufacturing comes to a screeching halt with stock-outs and projected auto-industry demand for the chip is not going to change the semiconductor status quo in the foreseeable future. Sourcing from multiple customers irritates shaky supplier relations. The auto industry projected demand for chips is 9-fold the present requirement. The actual effect on the auto industry is probably geometric to this factor. Purchasing is culturally thought of as a reactive function with little experience in forward planning, business planning, or strategic planning. The semiconductor industry ...

Purchase this Solution
Free BrainMass Quizzes
Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

View More Free Quizzes
Related BrainMass Solutions

  • AT&T Case study

    Ltd., 2004 (2) Case Study: One Company?s Experience ? AT&T?s Universal Card. The response provides you a structured explanation of different approaches to management in the context of a case study. It also gives you the relevant references.

  • Universal pair proofs

    In this case, we say f can be factored through U. This is the question: If (U, epsilon) is a universal pair for a group G and h is in Aut(U), show that (U, h*epsilon) is also universal for G.

  • Optimal trade policy for long term growth

    Like in any other decision, there is really no such thing as a universal solution to economic success. References Irogbe, K. (2005). Globalization and the development of underdevelopment of the third world.

  • Human Resource Management

    They can refer to specific right category, in case there is any violation of their right. Separation is also very important because in accordance with the rights, the cultural, social and economic needs change.

  • Outline on Research for a Study on Free Healthcare

    This study also helps establish this idea. Dyer, G. (2018, Feb 12). Universal healthcare streets ahead. 

  • Positivism & Empiricism in Research Methods

    In qualitative method, the purpose is to explore and study the social phenomena by getting as much detail about it as possible within context. It does not seek to establish a universal law but only seeks to explain the phenomenon within context.

  • This post discusses forces that influence health care.

    467849 economic, political, and social forces that influence health care delivery What are economic, political, and social forces that influence health care delivery in the future and why?

  • Hypothetical stories and stage of moral development

    In your case study, describe how both Kohlberg and Piaget would describe the stage of moral development of the child in your case study. According to these theorists, is the child at an age appropriate stage?

  • Universal Studios to design a research study

    382976 Universal Studios to design a research study Universal Studios to design a research study investigating how families make vacation decisions. Whom, within the family, would you interview? What kind of questions would you ask?

View More Related Solutions