Question: Sections A and B are worth 50 points. Section C is worth 100 points. Partial credit will be given for detailed, well- formulated answers, even

Sections A and B are worth 50 points. Section C is worth 100 points. Partial credit will be given for detailed, well- formulated answers, even if the approach / conclusion isnt 100% accurate. Dont not give one paragraph answers and expect a good grade. It is an essay please answer it good and long parag QUESTIONS:

1) Soventia, an American smartphone manufacturer based in California, has hired you as a business strategy consultant. Soventia is a well-funded start-up who has developed a ground-breaking new technology that will disrupt the entire world-wide industry. While the technology is innovative, the price of their new product runs nearly $2,500 per device, double what Apple charges for its latest release. To complicate matters, recent international data suggests that a global recession is taking hold, just as the first products are shipped to stores. Consider the following questions:

A) Soventia must decide if it is financially viable to launch the new product given the news timing above. One of their big questions is how much revenue can they generate in both the short run (within year 1) and long run (first 5 years). Discuss how you, as their consultant, will generate reliable estimates. (50 Points)

B) Costs for Soventia manufacturing in the US have increased by 50% during the 12 month planning phase. The labor force includes 10,000 people across 5 factories (California; Colorado, New York; Texas, and Florida). Soventia utilizes both general and custom-made parts to manufacture its smartphones. General parts have increased in price by 20% and custom parts have increased 1000% in the last quarter alone. Another costly input is the sophisticated computer electronics which accounts for 40% per machine. The cost distribution is as follows: Total Cost Per Unit: $1,000 Labor: $500 Electronics: $400 Parts / Other Inputs: $100 Discuss your strategy options for combating the rising cost of their US manufacturing. (50 Points)

C) On Tuesday morning, major news broke detailing a diplomatic breakdown between the US and China. As a result, the Chinese government has stopped any firms from trade with US companies. So, critical custom electronics are not available to Soventia from its primary supplier. To compound problems, a terrorist organization launched an attack in a Middle Eastern country where the back-up supplier is located. The back-up suppliers factory was badly damaged by a bomb and will be out of commission for at least 12 months. The good news is that they will sell you three-months of parts at 1500% the normal price. The final challenge is that the US government in January 2024 will require tracking and auditing on manufacturing inputs purchased abroad, which means that Soventia will have to devote extra company resources to maintaining compliance. Discuss options for addressing this situation in the short-term and long-term. Put together detailed strategic recommendations for growing the business, controlling future costs and managing risks over the next 5 years. (100 Points) please provide a good answer and the reason why? because the professor want to know the thoughts process please dont just list everything. explain everything and how it related! thank you

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