Cfc Technologies Case Study Solution

Introduction
CFC Technologies (CF) is the business mainly producing high end tablet computer and providing consulting services. It operated from headquarters based on Singapore which is heavily funded by venture capital. Recently due to rapid growth of the South East Asian markets, company had been generating a lot of profit and revenue growth in recent years. But lately the rise of E-commerce had presented a serious threat factor to CFC Technologies, since CF had been depended on resellers to reach out to the customer.
In this report mainly discuss about the performance of CFC technologies for past 3years and based on analysis of performance what firm’s should take the appropriate competitive strategies to improve its financial results.
c)

Number of tablet produced/year(‘000) 1000 1220 1477
Number of defects/year 30 61 90

Table 1.4 activity driver (per unit) 2014 2015 2016
Defect rate(defect/number of tablet produced )x100 0.003% 0.005% 0.0061%
Raw material cost (Raw material cost/number of tablet produced $8.47 $7.35 $7.12
Average selling price(sales of goods/ number of tablet produced/year)(‘000) $77.67 $66.67 $58.68
Average direct labour salary cost(direct labour cost/number of production) $7700 $7488.07 $18395.12
Average Consultant salary cost(consultant salaries/number of full consultant) $500 $450 $567.56

C) ii Suggest and discuss the appropriate competitive

Al, 2011). This strategy offers goods with low cost compare to competitors and gain comparative advantage rather than focusing on quality or differentiated functions. Especially, when maturing industries make price competition, the cost leading cooperation stands on a strong position. For applying cost leadership strategy, they could cut cost of the product input cost.

Input costs are very important part factor when implementing the cost leadership strategy successfully. Based on CFC technologies cost driver in past 3years, direct labour cost has gone up doubled in 2016 compared to 2015. In this situation CFC technology can take several actions to cut direct labour cost as following ways:
1) Decrease labour workers in the production line
2) Apply implementation technology in the production