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The document provides economic background information for the 9 live rounds. It states that oil prices have plunged and China's reported growth has slowed. China is important to MGI for both supply and demand. A sustained low oil price could increase political instability in regions that supply raw materials to MGI. The top countries for MGI's sales and purchases are listed. The first live round challenges MGI to consider changing from long-term "trusted suppliers" to cheaper alternatives given opportunities to renegotiate existing contracts. The second live round challenges MGI to decide whether to approve an investment in robotic manufacturing with artificial intelligence at the risk of moving EU plant staff to less secure employment contracts.
The document provides economic background information for the 9 live rounds. It states that oil prices have plunged and China's reported growth has slowed. China is important to MGI for both supply and demand. A sustained low oil price could increase political instability in regions that supply raw materials to MGI. The top countries for MGI's sales and purchases are listed. The first live round challenges MGI to consider changing from long-term "trusted suppliers" to cheaper alternatives given opportunities to renegotiate existing contracts. The second live round challenges MGI to decide whether to approve an investment in robotic manufacturing with artificial intelligence at the risk of moving EU plant staff to less secure employment contracts.
The document provides economic background information for the 9 live rounds. It states that oil prices have plunged and China's reported growth has slowed. China is important to MGI for both supply and demand. A sustained low oil price could increase political instability in regions that supply raw materials to MGI. The top countries for MGI's sales and purchases are listed. The first live round challenges MGI to consider changing from long-term "trusted suppliers" to cheaper alternatives given opportunities to renegotiate existing contracts. The second live round challenges MGI to decide whether to approve an investment in robotic manufacturing with artificial intelligence at the risk of moving EU plant staff to less secure employment contracts.
Here is some economic background to your 9 live rounds to set
the scene.
General news. Oil prices have plunged to levels unimagined 12
months ago and look as if they might stay there. Officially reported growth in China, always a difficult country for reliable statistics, has slowed to 6% pa but a researched report by an independent/iconoclastic thinktank suggests that massaging has increased dramatically and predicts 4% for 2015. China is important to MGI both for supply/purchases (outsourced manufacturing) and demand/sales (construction, aircraft, upmarket cars). A sustained low oil price could increase sharply political instability in Africa and the Middle East, from which Millcaster sources raw materials.
Top 3 MGI countries for sales (, 2014): 1. USA, 2. EU, 3. China
Top 3 MGI countries for purchases (, 2014): 1. China, 2. EU, 3.
Africa/Middle East
Here is the Live Round 1 Challenge:
GLOBAL BARGAINS. In recent years MGI has worked hard to
establish multi-year contractual relationships with key "trusted suppliers" to assure stability of price and security of volume. On the back of this, MGI is 12 months into a 36 month profit-and-risk sharing IS change programme (ISCP), in partnership with IBM and Huawei, to tackle its oldest legacy systems which are in procurement, and replace them with state-of-the-art-plus web-based JIT procurement, in a system which integrates with the systems of trusted suppliers. However some key break clauses in oil and copper contracts can now be exercised over the next 4 weeks. PSC is being bombarded (eg by Russian companies with no previous relationship) with price offers at half of MGIs current contractual levels. So, MGI should change from its trusted suppliers to cheaper ones? Here is the live round 2 challenge: I, ROBOT. The two sectors in which MGI has retained substantial manufacturing in its own plants within the European Union (EU) are rail/buses and automotive (next generation energy-efficient gearboxes). Both of these markets are growing because of EU environmental policies. MGI has been hesitating for some months over a state-of-the-art-plus investment in robotic with artificial intelligence manufacturing in these sectors. Some business newspapers have commented that this hesitation once again confirms MGI's reputation for lack of innovation. The financial case for this investment would be made certain if all EU front-line plant staff were migrated to zero hours contracts. Consultants advise this could be done through two actions: (a) modest financial incentives and (b) increasing fears in the workforce for the plants future if the investment is not made. About 4,000 people would be affected (less than 5% of MGIs global workforce). The task of the Decision Leader is whether or not to approve the robotic with artificial intelligence investment along with the two workforce actions.