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Case Study Sanchez Electronic Devices

Case Study Sanchez Electronic Devices. By: Robert Brown, Luis Hernandez, Stephanie and Jacqueline Delcid, Alan Luna, Olivia Shepperd. About Roberto Sanchez. Engineer and Manager in a factory Decisions, decisions What product? Location? Where to sell?. Starting Up a Business.

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Case Study Sanchez Electronic Devices

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  1. Case StudySanchez Electronic Devices By: Robert Brown, Luis Hernandez, Stephanie and Jacqueline Delcid, Alan Luna, Olivia Shepperd

  2. About Roberto Sanchez • Engineer and Manager in a factory • Decisions, decisions • What product? • Location? • Where to sell?

  3. Starting Up a Business • Chose to make ID tags for PC’s • Already new of some potential buyers • Located factory near raw material • Workers were educated and hardworking • Networks helped him sell anywhere

  4. The Business that Flourished • Prospered especially in Japan and India • Reasons why: • Good quality and service • Recession made for a weak dollar • Foreign purchasers got more for there money

  5. Short Lived Success • Prices were lowered because of competitors • Economy prospered and dollar increased • Tariffs imposed by the government helped at first but was later removed • Sales dropped • Japan and India sold items cheaper

  6. Pack Up and Move Out • Closed factory in Cleveland and opened in Cuidad Juarez, Mexico • Reduced quality and faster assembly process • Reduced costs, small profit, and is still in business

  7. Specialization • Specialization: to produce those goods and services which you can make most efficiently and with the greatest cost advantage • What good did Mr. Sanchez specialize in? • Reasons? • Examples of specialization in a global context?

  8. Mr. Sanchez’s Decisions • Mr. Sanchez’s decisions • Government actions • Factors that lead to the decision • Access to information

  9. Exporting Goods • Export: to sell goods or services to foreign markets • Countries where devices were exported • Relying on Exporting • Advantages? • Disadvantages?

  10. Exchange Rate • Exchange rate: the comparative value of two currencies • What role did exchange rates play? • How might U.S dollars affect Mr. Sanchez

  11. Importing Goods • Import: to sell goods or services made in other countries in your home market • Products that were imported to the U.S • What is the value in imported products in your community? • What is the cultural impact?

  12. Trade Barrier • Trade barrier: a governmental policy that affects the flow of trade • Trade barrier that helped? • What happened when it was removed? • Products with barriers or tariffs restricting trade • Removing trade barriers • No effects? • Dangers?

  13. Goals • Goals on opening factory? • Goals of U.S government policy at the time? • How did they change? • Who did they change?

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