Assumptions & Scope
Industrie Pininfarina is known for participating the designing and manufacturing of some of the most popular cars known to date; Alfa Romeo Spider Duetto, Fiat Coupe and Bentley Azure among others. This leads to the general assumption that the manufacturer is a power house in vehicle production, which to some point was. However, after close observation, it is evident that the company was not well invested in mass production of cars meaning that the designs the company produced would be what is referred to as limited editions today. The expansion proposal by Mitsubishi seemed easy for the company to accept. This was not the case as the case study by Professor Nell Jones documents in, Idustrie Pininfarina: The New Customer Decision. (2011)
The scope of this writing is on the ability of the company, Industrie Pininfarina to accept a new customer, satisfy the demand of mass production, transportation of the raw materials as well as expansion of their production capability while maintaining high quality products (Jones, 2011). This is a business undertaking that should be seen to help the company grow into a diversified motor vehicle manufacturing company in Italy.
Analysis and Conclusions
Industrie Pininfarina had reduced the production output by the year 1996. This is the time during which Mitsubishi approached the management with a counter proposal where the company looked to sub-contract Pininfarina to produce the Pajero mini for Europe. The company’s performance in 1996 had reduced greatly compared to that of 1992 due to the changes in the supplier’s technology of production of car parts. The decline in performance is evident when looking at the average production per hour in the two years. In 1992 60 cars per hour were produced which is quite a high number compared to the 42.5 cars per hour in 1996 (Jones, 2011). This is a 29.1% decline in productivity. All factors remaining constant means that the production of the company needed to be turned around.
In conclusion, the company needed a top-down intervention to change the situation. The management needed to see why the production was low and whether the partnership with Mitsubishi was going to change the situation. The levels of specialization needed to be leveled up. More employees needed to be trained on working a specific part of the company. This means that the company will produce faster because each employee has a specified role in the company. The management will also have to be diversified to ensure that the partnership will be beneficial to all three parties; the clients, Industrie Pininfarina and Mitsubishi.
Jones, N. (2011). Industrie Pininfarina: The New Customer Decision. Ontario: Richard Ivey School of Business Foundation.
Mitsubishi Motors. (1999, March 2). Mistubishi Pajero Pinin Compact SUV. Retrieved from Mistbishi Motors: www.mitsubishi-motors.com/en-corporate/pressrelease/corporate/detail781.html
At Solution Essays, we are determined to deliver high-quality papers to our clients at a fair price. To ensure this happens effectively, we have developed 5 beneficial guarantees. This guarantees will ensure you enjoy using our website which is secure and easy to use.
Most companies do not offer a money-back guarantee but with Solution Essays, it’s either a quality paper or your money back. Our customers are assured of high-quality papers and thus there are very rare cases of refund requests due to quality concern.Read more
All our papers are written from scratch and according to your specific paper instructions. This minimizes any chance of plagiarism. The papers are also passed through a plagiarism-detecting software thus ruling out any chance of plagiarism.Read more
We offer free revisions in all orders delivered as long as there is no alteration in the initial order instruction. We will revise your paper until you are fully satisfied with the order delivered to you.Read more
All data on our website is stored as per international data protection rules. This ensures that any personal data you share with us is stored safely. We never share your personal data with third parties without your consent.Read more