ITBO

Class Assignment

Submitted to: Prof Rachita Gupta

Submitted by:

Name Roll No.

Aishwarya Anand MBA21073

Akash Behera MBA21075

Mayank Sharma

Sagar Dalal

Faurecia Digital Transformation (A)

Alternatives:

a. Business as usual:
Pros - 1. There was still possibility of attracting successor model of an existing car
without a major investment
2. Relationship enhancement with Volkswagen
3. Chance of plant margin improvement
4. Assurance of high quality supplier in close proximity
Cons: 1. Business would continue to lose 3 million pounds
2. Missed opportunity

b. Close the Plant:

Pros - 1. Cash outflow can be saved
2. Morale of the team was already low
Cons - 1. Closing plant would cost 15 million pounds
2. Chances of major unrest
3. Undue advantage to competitors

c. Sell the plant to a local competitor:

Pros - 1. Losses can be shared
Cons- 1. Global relationship with VW might be affected
2. Sale would result in loss, cause plant is not profitable

d. Turn the Plant around:

Pros - 1. Cash flow would be improved
2. Relationship with customer, union, labor would be improved
3. Corporate image would improve
4. Impact on Greg career would be good
5. Process improvement and lean manufacturing would boost employees morale

Cons- 1. Long term strategy required

2. Immediate result might not be visible

e. Invest in new Areas of Growth

Pros - 1. Grow of revenue and profit
2. Already has flexibility to grow to new area
Cons - 1. Training of workforce required and additional cost might incurred
Preferred Alternative:
Turn the Plant around

By implementing a digital transformation strategy, Greg can ensure the plant is saved. The cash
flow would increase thus reducing the losses. Growth of revenue and profit margin would also
increase in future. The learning curve of employees would improve thus improving relationships
with employees.