Transcript 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





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
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
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
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
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?
Mr. Sanchez’s Decisions




Mr. Sanchez’s decisions
Government actions
Factors that lead to the decision
Access to information
Exporting Goods



Export: to sell goods or
services to foreign
markets
Countries where devices
were exported
Relying on Exporting
–
–
Advantages?
Disadvantages?
Exchange Rate

Exchange rate: the comparative value of two
currencies


What role did exchange rates play?
How might U.S dollars affect Mr. Sanchez
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?
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?
Goals
 Goals
on opening factory?
 Goals of U.S government policy
at the time?
– How did they change?
– Who did they change?