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Submitted By nikhilprem1
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American Connector Company

The intent of this paper is to address an operational management situation regarding American Connector Company (ACC) as they react to a competitor's announcement to build a major plant near ACC's main manufacturing facility. In the following pages, we will address the context of the two respective company backgrounds, strategic and financial elements of their operations, and a justification for a recommended plan of action for the ACC's response to their competition.

Background and Overview American Connector Company (ACC) and DJC Corporation (DJC) were both second tier competitors in the fragmented fra mented $16 billion electrical connector industry. ACC and DJC each maintained distinct theories related to the roles of manufacturing within their respective corporations. DJC, a Japanese corporation, relied heavily upon efficient manufacturing processes as the basis for their competitive strategy and as the means to achieve their annual profit goals. ACC viewed their success as dependent upon their ability to offer customized connector solutions and high end products. DJC recently announced the construction of an US-based manufacturing facility located near ACC’s Sunnyvale, CA facility. Faced with the threat of a highly efficient competitor launching a nearby production facility, ACC must develop a plan of action to limit DJC’s intrusion into their established North American market.

The Strategic and Financial Elements of DJC Corporation DJC is easily perceived as the typical Japanese manufacturer when considering their core principles. DJC’s corporate objective was profit maximization. High product quality was the prerequisite for this and low production costs would deliver long term success. Initially, innovation in product technology was bypassed and American made products, which were the most

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