Harrisburg University
MGMT 510-50 Group Case-3
Team Members
Hariom Reddy Kethireddy-186367
Srikanth Boddula-99195
Sandeep Reddy Thandra-147713
Anilkumar Thota-180551
Parul Phaugat-156305
Sunnith Reddy-157818
1. Summarize the case in not more than 500 words.
This case deals with a cold forging manufacturing company CX Technology in Taiwan
which was established in 1972 as a bullets and bicycle parts manufacturer and later it has
changed its market to spear components due to high demand in market. It has a great
reputation in automobile industry as a tier 2 supplier of speaker components for about 20
years and it also have ISO certification. It has expanded its production wings in 1996 in
Vietnam and in 2002 in China for fulfilling its high demands of speaker components. The
company was known for its quality of speaker products which it can supply in high volumes
to automobile industries. The chairman of CX technologies, Ting was looking to diversify
the company’s products and wanted to transform into automotive tier 2 supplier because
the company’s revenue was stagnated in years 2002 to 2008 and Ting sees the future of the
company depends upon the diversification of its new products into two or three potential
markets. Ting and his management team has depended on institution to come up with good
potential products that can suits the future market demands. They have good experience in
cold forging so the company was looking into markets where their experience can count ,
the company was suggested for some of the potential markets such as air conditioner parts,
motor cycle parts, washing machine parts and so on .The company underwent major
changes in year 2008 under the leadership of company’s chairman, the company’s sales,
marketing and R&D were autonomous in all three regions before Ting wanted to unify all
three departments in to single departments which was monitored by Vice president Lee to
gain more efficient economy and to have good knowledge market surroundings. Ting also
adopted ERP systems throughout his company and made CX in Taiwan as headquarters.
Ting and his managers was considering 3 markets Vietnam, United States and China where
they found the scope of entering as automotive tier 2 supplier. CX technology has proven
to be leader in speaker parts supplier for tier 1 automobile around the world, and it wants
to make its mark as tier 2 automobile supplier. The company’s senior managers and Ting
believes that the US market has seen decline of automobile market in 2008 and in recent
times its market was growing strong again and the US suppliers were looking for
companies that can supply products with high quality and with cheap labor cost for
manufacturing parts and these qualities were there in CX technology. The automobile
market in china also growing rapidly and the local and US automobile companies were
trying to produce more cars due to the future demands and they were looking for good tier
2 automobile suppliers, this made easy for CX technology to grab the attention of Chinese
automobile market. CX technology also looking potential scope in Vietnam because it is
the largest cold forging manufacturing company in its region
2. What strategic management lessons did you learn from this case? Give and explain,
