Free Essay

Logitech Case - Discussion Question 3

In: Business and Management

Submitted By tdhiro052
Words 376
Pages 2
Use the theory of comparative advantage to explain the way in which Logitech has configured its global operations. Why does the company manufacture in China and Taiwan, undertake basic R&D in California and Switzerland, design products in Ireland, and coordinate marketing and operations from California?

According to Ricardo's theory of comparative advantage, nations will invest all their resources to produce what they can produce most effectively. They should focus on the product which they can produce most effectively even if they were able to produce a certain product more effectively than other countries. This theory is applied as follows.

Regarding China, it is cost effective to assemble and manufacture there. China is the most populous country, and it is important for the Chinese government to provide work environments for its people to earn their living. So a plant for high-volume manufacturing is a good way of employing many people. Even now there are a lot of semi-literature people in China. This resource can manufacture products which need semi-skilled labour most efficiently because of their low wage. Thus, Logitech uses China to manufacture mice.
While Taiwan, it is giving land in their industrial parks at very nominal rates. Taiwan’s IT industry is also expanding and the quality is high level. So Taiwan had developed a strong supply base for computer parts, it has skillful people. Logitech is taking advantage of the facilities.
As regards California, it is the closest Alameda County city to Silicon Valley. Having an office in California provides opportunities to interact with the other IT companies. For an IT company, Silicon Valley is special place. It also brings them advanced ideas. Due to these, Logitech chooses California as a centre for R&D. Since there are many large corporations in California, their marketing division is also there.
About Switzerland, it is known for precision industry such as watch industry. The right talent is available there for developing the mice. Therefore, Logitech still undertakes primarily software programming is Switzerland.
In Ireland, the design firm is used by Logitech for ergonomics design. The Ergonomics design of Ireland is very famous for their knowledge concerning the characteristics of human beings. These apply to Logitech’s design of systems and devices of all kinds.

Similar Documents

Premium Essay

Global Business Management

...Module Name and Code : Global Business Management () Programme: Master of Business Administration Degree Surname: Dhorat First Names: Ahmed Iqbal Table of Contents 1. Introduction 3 2. Question One : Logitech Case Study 3 3. Question Two : Dixon Ticonderoga Case Study 3 Question 2.2 : Dixon's Strategy 3 Question 2.3.1 : Arguments Raised by Dixon Ticonderoga in Favour of Anti-dumping Duties 3 Question 2.3.2 Alternatives to Anti-dumping action 4 4. Question Three : Foreign Direct Investment ( FDI ) 5 Question 3.1 : The Reasons for FDI Growth Over the Past 20 Years 5 Question 3.2 : Mergers and Acquisitions vs. Greenfield Investments 6 Question 3.3 : Using Vernon's Product Life Cycle to explain FDI 8 5. Question Four : Functions of the Foreign Exchange Market 9 6. Conclusion 10 7. References 10 8. Bibliography 11 Introduction Heizer and Render (2008) have highlighted ten critical operations management functions which were referred to as “ Decision Areas”. Senior management outlines Question One : Logitech Case Study 1 Question 1.1 : Logitech's Decision to Locate Production in China As with most cases there are both supporters and critics of free trade. Usually industries that find themselves at a competitive disadvantage to foreign goods and services are opposed to free trade and seek protectionist measures from governments. From an economical perspective, free trade reduces costs of products as companies take advantage of lower costs in......

Words: 4579 - Pages: 19

Premium Essay

What Does the Matsushita Case Teach You About the Relationship Between Societal Culture and Business Success?

...Hill 7e End of Part Case Notes Part One: Globalization There are no Part One cases. Part Two: National Differences in Political Economy; Differences in Culture; Ethics in International Business Nike: The Sweatshop Debate 1. Should Nike be held responsible for working conditions in foreign factories that it does not own, but where subcontractors make products for Nike? Answer: Most students will probably agree that Nike should be held responsible for the working conditions in foreign factories where subcontractors make products the company sells. Students taking this perspective are likely to argue that since the workers are there to produce the products for Nike, the fact that the company does not actually own the facilities is immaterial – Nike is the beneficiary of the work done in the factory. Some students may suggest that Nike be resolved of some responsibility if the factories also produce products for other companies. 2. What labor standards regarding safety, working conditions, overtime, and the like, should Nike hold foreign factories to: those prevailing in that country or those prevailing in the United States? Answer: The question of whether of whether to hold foreign factories to the same standards as domestic factories is difficult. Some students might argue that Nike should require all factories regardless of their location to maintain the same standards when it comes to working conditions, overtime, and so on. Other students however, may suggest......

Words: 13231 - Pages: 53

Premium Essay

Mgmt 4900

...MGMT 4900 Strategy, Policy and Planning Spring 2015 TuTh 12:30 – 1:45pm, BUSN 218 Instructor: | Xian Cao | E-mail: | Xian.Cao@Business.Uconn.Edu | Office:Phone: | School of Business 404(860)486-6423 | Office Hours: | TuTh 1:45 – 2:45pm and By Appointment | I. Course Description and Objectives Course Description: A strategy is an integrated and coordinated commitment designed to exploit a firm’s core competencies. Managers use a strategy to identify market opportunities, analyze competitors, and determine among competing alternatives to enhance the performance of their firms. A strategic decision requires managers to use resources appropriately with respect to external environments in order to help their firms create unique firm value and gain competitive advantages. In this sense, a strategy tells managers what the firm will do as well as what the firm will not do. MGMT 4900 introduces the key concepts, tools and principals of strategic management. It requires you to have an interdisciplinary perspective that uses the ideas, concepts, and theories from your functional courses such as Accounting, Economics, Finance, Marketing, Organizational Behavior, and Statistics. It requires you to take a general management perspective to evaluate and analyze policies in each above functional area and integrate them into an overall competitive strategy. Learning Objectives: *......

Words: 3733 - Pages: 15

Premium Essay

We Are Big Inc

...main purpose of the project is to research possible applications of green computing including: ● Data center and overall efficiency; ● Disposal of electronic waste and recycling; ● Telecommuting; ● Virtualization of server resources; ● Thin client solutions; ● Use of open source software; ● Development of new software to address green computing for internal use and potential sale to other organizations The overall allocated budget for the Green Computing Research Project is $700,000 and the allocated timeframe is six months from the agreed upon start date. I. PROJECT INTEGRATION Discount rate | 7% |   |   |   |   |   |   |   |   |   |   | Green Computing Research Project | YEAR 0 | YEAR 1 | YEAR 2 | YEAR 3 | TOTAL | Benefits | $0 | $500,000 | $2,500,000 | $2,500,000 | $5,500,000 | Costs | $700,000 | $2,000,000 |...

Words: 5265 - Pages: 22

Premium Essay

Consumer Management

...CHAPTER 4 Consumer Motivation LEARNING OBJECTIVES After studying this chapter students should be able to: 1. Understand the types of human needs and motives and the meaning of goals. 2. Understand the dynamics of motivation, arousal of needs, setting of goals, and interrelationship between needs and goals. 3. Learn about several systems of needs developed by researchers. 4. Understand how human motives are studied and measured. CHAPTER SUMMARY Motivation is the driving force within individuals that impels them to action. This driving force is produced by a state of uncomfortable tension, which exists as the result of an unsatisfied need. All individuals have needs, wants, and desires. The individual’s subconscious drive to reduce need-induced tensions results in behavior that he or she anticipates will satisfy needs and thus bring about a more comfortable internal state. Motivation can be either positive or negative. Innate needs—those an individual is born with—are physiological (biogenic) in nature; they include all the factors required to sustain physical life (e.g., food, water, clothing, shelter, sex, and physical safety). Acquired needs—those an individual develops after birth—are primarily psychological (psychogenic); they include love, acceptance, esteem, and self-fulfillment. All behavior is goal oriented. Goals are the sought-after results of motivated behavior. The form or direction that behavior takes—the goal that is selected—is a......

Words: 7940 - Pages: 32

Premium Essay

Virtural Meeting

...Hospitality Business Models Confront the Future of Meetings Cornell Hospitality Industry Perspective No. 4, June 2010 by Howard Lock and James Macaulay Advisory Board Ra’anan Ben-Zur, Chief Executive Officer, French Quarter Holdings, Inc. Scott Berman, U.S. Advisory Leader, Hospitality and Leisure Consulting Group of PricewaterhouseCoopers Raymond Bickson, Managing Director and Chief Executive Officer, Taj Group of Hotels, Resorts, and Palaces Stephen C. Brandman, Co-Owner, Thompson Hotels, Inc. Raj Chandnani, Vice President, Director of Strategy, WATG Benjamin J. “Patrick” Denihan, Chief Executive Officer, Denihan Hospitality Group Joel M. Eisemann, Executive Vice President, Owner and Franchise Services, Marriott International, Inc. Kurt Ekert, Chief Operating Officer, GTA by Travelport Brian Ferguson, Vice President, Supply Strategy and Analysis, Expedia North America Chuck Floyd, Chief Operating Officer–North America, Hyatt Anthony Gentile, Vice President–Systems & Control, Schneider Electric/Square D Company Gregg Gilman, Partner, Co-Chair, Employment Practices, Davis & Gilbert LLP Susan Helstab, EVP Corporate Marketing, Four Seasons Hotels and Resorts Jeffrey A. Horwitz, Partner, Corporate Department, Co-Head, Lodging and Gaming, Proskauer Kevin J. Jacobs, Senior Vice President, Corporate Strategy & Treasurer, Hilton Worldwide Kenneth Kahn, President/Owner, LRP Publications Paul Kanavos, Founding Partner, Chairman, and CEO, FX Real......

Words: 6777 - Pages: 28

Premium Essay

Search My Study

...AFTER READING THIS CHAPTER, YOU SHOULD BE ABLE TO: 1 Differentiate between invention, innovation, and technological diffusion. 2 Explain how entrepreneurs and other innovators further technological advance. 3 Summarize how a firm determines its optimal amount of research and development (R&D). 4 Relate why firms can benefit from their innovation even though rivals have an incentive to imitate it. 5 Discuss the role of market structure in promoting technological advance. 6 Show how technological advance enhances productive efficiency and allocative efficiency. 11 WEB 11W-1 Technology, R&D, and Efficiency • “Just do it!” In 1968 two entrepreneurs from Oregon developed a lightweight sport shoe and formed a new company called Nike, incorporating a “swoosh” logo (designed by a graduate student for $35). Today, Nike sells $18 billion worth of goods annually. • “Leap Ahead.” In 1967 neither Intel nor its product existed. Today it is the world’s largest producer of microprocessors for personal computers, with about $35 billion of annual sales. • “Save money, live better.” Expanding from a single store in 1962 to about 7000 stores worldwide today, Walmart’s annual revenue ($400 billion) exceeds that of General Motors or IBM. Nike, Intel, and Walmart owe much of their success to technological advance, broadly defined as new and better goods and services or new and better ways of producing or distributing them. Nike Bonus Web Chapter and Intel......

Words: 13379 - Pages: 54

Premium Essay


...TABLE OF CONTENT INTRODUCTION……………………………………………………………………………….2 1.1 The strategic contexts and terminology – missions, visions, objectives, goals, core competencies of Samsung…………………………………………………………………..3 1.2 The issues involved in strategic planning………………………………………………….6 1.3 Different planning techniques of Samsung electronics…………………………………...8 2.1 Organization audit for Samsung Electronics…………………………………………….11 2.2 Environmental audit for Samsung Electronics………………………………………….13 2.3 The significance of stakeholder analysis…………………………………………………17 CONCLUSION…………………………………………………………………………………19 REFERENCES…………………………………………………………………………………20 INTRODUCTION Samsung Electronics is one of the world's largest semiconductor manufacturers; Samsung Electronics is also South Korea's top electronics company. It makes many kinds of consumer devices, including DVD players, digital TVs, and digital still cameras; computers, color monitors, LCD panels, and printers; semiconductors such as DRAMs, static RAMs, flash memory, and display drivers; and communications devices ranging from wireless handsets and smart phones to networking gear. The company, which is the flagship member of Samsung Group, also makes microwave ovens, refrigerators, air conditioners, and washing machines. Nearly half of sales come from the Asia/Pacific region. Top industries for Samsung Electronics Co. are memory chip and module manufacturing, communications chip manufacturing, wireless telephone......

Words: 5872 - Pages: 24

Free Essay

Purple Cow! Transform Your Business by Being Remarkable

...Purple Cow Transform Your Business By Being Remarkable Seth Godin visit Penguin at: e penguin about the author Seth Godin is the author of four worldwide bestsellers including Permission Marketing, Unleashing the Ideavirus and Survival is Not Enough. He is a renowned public speaker and is contributing editor at Fast Company magazine.You can find him at This is a work of fiction. Names, characters, places, and incidents are either the product of the author’s imagination or are used fictitiously, and any resemblance to actual persons, living or dead, business establishments, events or locales is entirely coincidental. Purple Cow Portfolio Book / published by arrangement with the author All rights reserved. Copyright © 2002 by Do You Zoom, Inc. This book may not be reproduced in whole or part, by mimeograph or any other means, without permission. Making or distributing electronic copies of this book constitutes copyright infringement and could subject the infringer to criminal and civil liability. For information address: The Berkley Publishing Group, a division of Penguin Putnam Inc., 375 Hudson Street, New York, New York 10014. The Penguin Putnam Inc. World Wide Web site address is ISBN: 0-7865-4431-7 PORTFOLIO BOOK® Portfolio Books first published by Penguin Publishing Group, a member of Penguin Putnam Inc., 375 Hudson Street, New York, New York 10014. Portfolio and the "Portfolio" design are......

Words: 33830 - Pages: 136

Premium Essay

Rebranding and Its Effects on Competitiveness of an Organization

...RE-BRANDING AND ITS CONTIBUTION TO THE COMPANY’S COMPETITIVENESS: A CASE STUDY OF ZAIN KENYA, ELDORET BRANCH BENJAMIN CHERUTICH ELD/DBM/2641 Research project submitted to The Kenya Institute of Management in partial fulfillment of the requirement for the award of Diploma in Business Management September, 2009 DECLARATION Declaration by the candidate This research study is my original work and has not been presented to any other examination body. No part of this research should be reproduced without my consent or that of The Kenya Institute of Management. BENJAMIN CHERUTICH; Sign…………………………. Date………………… Declaration by the supervisor This research has been submitted for examination with my approval as The Kenya Institute of Management Supervisor. MR. EVANS OBARE; Sign ………………………… Date……………………… Lecturer KIM Eldoret For and on behalf of The Kenya Institute of Management STEPHEN KAMAU; Sign ……………………….. Date…………………………… Branch Manager Eldoret DEDICATION I would like to dedicate this research project to my beloved fiancée Priscillah and my nephew Jackline for their encouragement. I also dedicate to my loving parents Mr. and Mrs. Samuel Mendwa for their support and love. ACKNOWLEDGEMENT First I would like to give praise and honor to the Almighty God for giving me sufficient grace and power to write this project....

Words: 17099 - Pages: 69

Premium Essay

Association Rule Mining

...Notification In the content of this chapter material, you could read section 5.1, 5.2.1 and 5.2.2 to leaning details about the ideas and procedures to mine valid association rules, which are identical to the content Professor Chen introduced to you in class. Note that you do not need to pay more attention to the algorithm or codes of this method. Instead, ideas and related examples are more important for you to understand this method and it is enough to help you complete the assignment. Furthermore, to resolve the problem 2.(c) in EXERCISE 3, you need to read section 5.3.1 to know how to do. This part gives you the concept of multi-level association rule or generalized association rule. 基本阅读:英文资料 5.1,5.2.1 和 5.2.2,这部分内容与老师上课所介 绍的内容一致,不必过分专注于其中的算法和代码部分,更重要的是 理解方法意思,过程及其中的相关例子。扩展阅读:为了解决作业问 题 2 中的(c)小问,你还最好阅读 5.3.1 部分。 Mining Frequent Patterns, Associations, and Correlations Frequent patterns are patterns (such as itemsets, subsequences, or substructures) that appear in a data set frequently. For example, a set of items, such as milk and bread, that appear frequently together in a transaction data set is a frequent itemset. A subsequence, such as buying first a PC, then a digital camera, and then a memory card, if it occurs frequently in a shopping history database, is a (frequent) sequential pattern. A substructure can refer to different structural forms, such as subgraphs, subtrees, or sublattices, which may be combined with itemsets or subsequences. If a......

Words: 26078 - Pages: 105

Free Essay

International Business

...This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License without attribution as requested by the work’s original creator or licensee. Organization The overarching logic of the book is intuitive—organized around answers to the what, where, why, and how of international business. WHAT? Section one introduces what is international business and who has an interest in it. Students will sift through the globalization debate and understanding the impact of ethics on global businesses. Additionally, students will explore the evolution of international trade from past to present, with a focus on how firms and professionals can better understand today’s complex global business arena by understanding the impact of political and legal factors. The section concludes with a chapter on understanding how cultures are defined and the impact on business interactions and practices with tangible tips for negotiating across cultures. WHERE? Section two develops student knowledge about key facets of the global business environment and the key elements of trade and cooperation between nations and global organizations. Today, with increasing numbers of companies of all sizes operating internationally, no business or country can remain an island. Rather, the interconnections between countries, businesses, and institutions are inextricable. Even how we define the world is changing. No longer classified into simple and neat...

Words: 239764 - Pages: 960

Premium Essay

Management Information Systems

...Technology in Theory • Aksoy, DeNardis Office Applications in Business Problem-Solving Cases in Microsoft Access & Excel, Sixth Annual Edition • Brady, Monk Succeeding in Business Applications with Microsoft Office 2007 • Bast, Gross, Akaiwa, Flynn, Succeeding in Business with Microsoft Office Excel 2007 • Gross, Akaiwa, Nordquist Succeeding in Business with Microsoft Office Access 2007 • Bast, Cygman, Flynn, Tidwell Databases Database Systems, Eighth Edition • Rob, Coronel Concepts of Database Management, Sixth Edition • Pratt, Adamski Data Modeling and Database Design • Umanath, Scamell A Guide to SQL, Seventh Edition • Pratt A Guide to MySQL • Pratt, Last Guide to Oracle 10g • Morrison, Morrison, Conrad Oracle 10g Titles Oracle9i Titles Enterprise Resource Planning Concepts in Enterprise Resource Planning, Third Edition • Monk, Wagner Data Communications Data Communications and Computer Networks: A Business User’s Approach, Fourth Edition • White Systems Analysis and Design Systems Analysis and Design in a Changing World, Fifth Edition • Satzinger, Jackson, Burd Object-Oriented Analysis and Design with the Unified Process • Satzinger, Jackson, Burd Systems Analysis and Design for the Small Enterprise, Third Edition • Harris Security Management of Information Security, Second Edition • Whitman, Mattord Principles of Information Security, Third Edition • Whitman, Mattord Readings and Cases in the Management of Information Security • Whitman, Mattord Hands-On Information......

Words: 223685 - Pages: 895

Premium Essay

Asq Conference

...Producing R E S U LT S Proven Solutions in Today’s Challenging World WORLD CONFERENCE ON QUALIT Y AND IMPROVEMENT 2012 ASQ MAY 21–23, 2012 Anaheim, California Anaheim Convention Center Preliminary Program General Information 2012 ASQ WORLD CONFERENCE ON QUALIT Y AND IMPROVEMENT Conference Location Anaheim Convention Center 800 West Katella Avenue Anaheim, CA 92802 Attendee Registration Hours (Subject to change) Saturday, May 19 2:00 p.m. – 5:00 p.m. Sunday, May 20 9:00 a.m. – 1:00 p.m. 5:00 p.m. – 8:00 p.m. Monday, May 21 7:00 a.m. – 5:00 p.m. Tuesday, May 22 7:30 a.m. – 5:00 p.m. Wednesday, May 23 7:30 a.m. – 10:00 a.m. Registration will be located in the Anaheim Convention Center. Dates Tips to Lead You to Savings Check out these savings opportunities to stretch your conference travel budget— without missing out on the premier quality conference of 2012! Save big when you: Preconference Events Monday, May 14 – Sunday, May 20 Conference Dates Monday, May 21 – Wednesday, May 23 Conference Presentations Approximately two weeks prior to the conference, all registered attendees will receive access to the PowerPoint presentations for the sessions of the World Conference and each of the four conferences held concurrently with it (Institute for Continual Quality Improvement, Institute for Software Excellence, Quality Institute for Healthcare, and Quality in Sustainability Conference). and......

Words: 21495 - Pages: 86

Premium Essay


...USA $25.95 CANADA $27.95 • W h y do our headaches persist after taking a one-cent aspirin but disappear when we take a 50-cent aspirin? • Why does recalling the Ten Commandments reduce our tendency to lie, even when we couldn't possibly be caught? • W h y do we splurge on a lavish meal but cut coupons to save 25 cents on a can of soup? • W h y do we go back for second helpings at the unlimited buffet, even when our stomachs are already full? • And how did we ever start spending $4.15 on a cup of coffee when, just a few years ago, we used to pay less than a dollar? hen it comes to making decisions in our lives, we think we're in control. We think we're making smart, rational choices. But are we? In a series o f illuminating, often surprising experi­ ments, M I T behavioral economist Dan Ariely refutes the common assumption that we behave in fundamentally rational ways. Blending everyday experience with ground­ breaking research, Ariely explains how expectations, emotions, social norms, and other invisible, seemingly illogical forces skew our reasoning abilities. N o t only do we make astonishingly simple mistakes every day, but we make the same types of mistakes, Ariely discovers. We consistently overpay, underestimate, and procrastinate. We fail to understand the profound effects of our emotions on what we want, and we overvalue what we already own. Yet these misguided behaviors are neither random nor senseless. They're systematic and predict­ able—making us predictably......

Words: 95122 - Pages: 381