Objectives: This case explores the question of how Baxter can provide systems support for a new stamping plant in Queretaro, Mexico. It describes the difficulties that a small, family-owned manufacturer has in coping with the problems of language, distance, and culture as Baxter people in the United States try to help the new management people in Mexico. This is the same company described in the Make-or-Buy Decision at Baxter Manufacturing Company case study, but this case study deals with a different situation that came up later.

Overview Baxter Manufacturing Company (BMC) is a very successful specialized metal stamping shop that produces deep-drawn parts for the automotive and appliance industries. BMC is family owned and managed, and has around 400 employees. About 20% of Baxters production ends up in factories in Mexico. A major customer asked Baxters owners to establish a plant in Mexico to serve the customers new assembly plant in there. After some consideration, Baxters management decided to build a stamping plant in Queretaro, Mexico, to serve that customer as well as other customers. This case explores the question of how to provide the necessary systems to support the new Mexican plant. Don Collins, Baxters MIS manager, explored a number of alternatives, none of which turned out to be very attractive. He also had a good deal of difficulty in dealing with the problems of language, distance, and culture as he attempted to resolve the new plants IS issues.

What are the Strengths, Opportunities, Weaknesses and Threats for Baxter when building the plant in Mexico. For each of them (Strengths, Weaknesses, Opp, Threats) List them as bullets, and then also briefly state why.

1. Strengths:

2. Opportunities:

3. Weakness:

4. Threats:

Tip: Recall that Strengths and Weaknesses are Internal factors, and the Opp/Threats are external factors