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Computer Intelligence Company (CIC), which manufactures high-quality computers for small businesses. CIC has an excellent reputation for customer service, product innovation, and quality. CIC is
Computer Intelligence Company (CIC), which manufactures high-quality computers for small businesses. CIC has an excellent reputation for customer service, product innovation, and quality. CIC is able to compete with the larger manufacturers of computers because it designs the product especially for each customer and has superior service. CIC has a growing list of customers who are willing to pay a small premium for these advantages. The manufacturing process consists primarily of assembling components purchased from various electronics firms plus a small amount of metalworking and finishing. The assembly operations cost $250 per unit. The purchased parts cost CIC $500, of which $300 is for parts that CIC could manufacture in its existing facility for $190 in materials for each unit plus an investment in labor and equipment that would cost $55,000 per month. CIC is considering whether to make or continue to buy these parts. CIC can contract out the marketing, distributing, and servicing of its units to another firm, JBM Enterprises. This would save CIC $175,000 in monthly materials and labor costs. The cost of the contract would be $130 per machine sold for the average of 600 units Sarmenn 1 ses value- $130 per machine sold for the average of 600 units sold per month. CIC uses value- chain analysis to study the effect of these decisions on its strategy and costs. 1. Demonstrate how management CIC Manufacturing can make decisions using the value-chain analysis. Solve the problem and give your opinion on the effect of the management decisions on its strategy and costs. Maximum size for new files: 50MB Files You can drag and drop files here to Cadd them. Accepted file types Document files .doc.docx .epub.gdoc.odt.oth ott.pdf .rtf PDF document.pdf Word 2007 document.docx Word document.doc
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