Question
Canadian Tech Ltd, an Abu Dhabi computer company specialized in selling Artificial intelligence products has about 10 employees and have exponential sales growth recently. The
Canadian Tech Ltd, an Abu Dhabi computer company specialized in selling Artificial intelligence products has about 10 employees and have exponential sales growth recently. The company has a strategy to immediately expand locally and eventually go international. At the moment, the system and process are non-existent as everyone sits in an open office space and the company wishes to team trusts one another with the founder and CEO coordinating everything with everyone directly. There are not enough staff to manage the current demand of their products and the company wishes to scale-up to 150-200 employees within a few months to capture the local and global demand of their product. One of the first order of their expansion strategy, the company determined they would outsource some of their HR related function in order for them to focus more on their strength as they continue expanding. The CEO shortlisted 3 companies for the production of their AI gadgets: one in Ajman, in Sharjah and another in Dubai. The company listed decided to list 7 critical factors (Key success factor) as their criterial in order to pick the overall best suited company . The companies are ranked from 1-5, with 5 being highest score. ( 10 Marks)
A ) Determine which company should be selected based on the criteria above?
KSF | Weight importance | Dubai | Sharjah | Ajman |
| 0.2 | 3 | 3 | 5 |
| 0.2 | 4 | 3 | 3 |
| 0.2 | 5 | 4 | 3 |
| 0.1 | 4 | 5 | 2 |
| 0.1 | 5 | 3 | 5 |
| 0.1 | 4 | 2 | 4 |
| 0.1 | 2 | 3 | 5 |
B) Suppose that new branch is expected to produce 3,000 units of AI gadgets per year . The company accounting and finance dept. determine that the variable cost of producing the AI gadget is $30 , $25 , $30 for Dubai , Sharjah and Ajman respectively. Other overhead costs per year are $60,000 , $70,000 , $50,000 . Analyze which is the most economical location for the expansion?
C) As an experience Operations manager , what decision would you take to pick the right location ? Explain your answer .
D)Using the Mckinsey 7S model , determine the current as-is and the companys readiness for the future . What areas would you advice the CEO to focus on ?
Hint : list 7S ( Strategy , Structure , system , skills , staff , style and share value ) and provide notes/comments on current situation (as-is) and to-be for each to align with their expansion:
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