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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.

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