Strategic Analysis of Hon Hai Case Study Example | Topics and Well Written Essays - 2500 words

Strategic Analysis of Hon Hai - Case Study Example The study will also cover the merger and acquisition activities of the company along with the position of the company before and after the merger and acquisition activities. The report will also use key financial ratios to report on the financial performance of the company. While 'business strategy' represent the goal of the company to attain sustainable competitive advantage in one of the businesses of the company, 'corporate strategy' represents the objective of the company to manage multi-business activities to create corporate-wide advantage that will benefit each of the business the company owns and operates. The corporate strategy looks into the opportunities available to the company both internally and externally to enhance its competitive strengths and sustain its sales growth and profitability. A strategic analysis of any company thus includes assessing the strengths and weaknesses of the company on the basis of the internal environment as well as threats and opportunities that the company is subjected to because of its relative positioning in the market and the industry. The main objective of any strategic analysis is to identify the ways in which the existing resources can be shared between the multiple business activities and also identifyi ng new resources which will enhance the competitive strengths of the company. ... With this background this study intends to make a strategic analysis of the company Hon Hai (Foxconn) to report on the efforts of the company to enhance and sustain its competitive advantages. 1.1 Hon Hai (Foxconn) - An Overview Incorporated in the year 2004 the company is a group company of Foxconn Technology. Foxconn Group is the foremost provider of joint-design, joint-development, manufacturing, assembly and after-sales services to global Computer, Communication, and Consumer-electronics ("3C") leaders. Focusing on fields of nanotechnology, heat transfer, wireless connectivity, material sciences, and green manufacturing process, Foxconn's over 15,000 patents granted worldwide by 2005 made it a recognized leader of innovation and technical know-how in rankings such as MIT's patent scorecard. HonHai is mainly producing Hinge related products adopting an innovative technology. The production process is different from that of the traditional Hinge companies. By using the new technology the company has enhanced the production capacity to a great extent and has reduced the cost of production. The company has made a net operating income of $ 10.17 million representing 8 percent of the turnover, as of the end of the year 2006. The company is following a different production process than the competitors operating in the industry. The use of this modern technology has enhanced the production capacity of the capacity while lowering the cost of production. The company presently employs around 975 people. 1.2 Research Objectives The study will cover the following objectives among other things: (1) A detailed study of the advantages and disadvantages of merger and acquisition activities in general (2) A strategic analysis of the Company Hon Hai