Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PART A: CASE ANALYSIS. The Wall Street Journal, 4 Jan 2 0 2 3 Wednesday Nvidia and Foxconn Join Forces on Electric Vehicles BY SABELA

PART A: CASE ANALYSIS.
The Wall Street Journal, 4 Jan 2023 Wednesday Nvidia and Foxconn Join Forces on Electric Vehicles BY SABELA OJEA
Graphics chip maker Nvidia Corp. is partnering with electronics-component maker Foxconn Technology Group on electric vehicles, as both tech companies continue to push into the booming market.
The two companies on Tuesday announced the partnership, in which Foxconn, a contract manufacturer best known for its work on Apple Inc. products, would produce electronic control units based on Nvidia's Drive Orin system-ona-chip, the central computer for intelligent automobiles.
Foxconn, formally known as Hon Hai Precision Industry Co., said that its manufactured electric vehicles will use Nvidia's electronic control units and sensors that enable highly automated driving. The partnership will allow both companies to help the industry meet growing market demand for electric vehicles while increasing their presence in the market.
The U.S. auto industry is in the midst of one of its biggest factory-building booms in years, fueled largely by the shift to electric vehicles, among other trends. The global auto industry plans to spend a collective $526 billion on electric vehicles through 2026, according to consulting firm AlixPartners.
With the agreement, Taipel based Foxconn aims to speed up its ability to make electric vehicles and cut costs, while Santa Clara, California based Nvidia looks to boost manufacturing of its components. Six months ago. Foxconn started building its first electric-car battery plant in Taiwan.
Foxconn has made other recent moves into the electric vehicle space. In November, Foxconn entered into a joint venture with Saudi Arabia's sovereign-wealth fund to manufacture electric vehicles to help the Middle East country diversify its economy away from oil.
Foxconn also in November said it would invest $170 million in Lordstown Motors Corp an EV startup that is building its first all-electric pickup truck at a former General Motors Co. plant in Ohio.
Foxconn and Lordstown Motors are planning to jointly develop their first electric vehicle together Nvidia. meanwhile, has long supplied hardware to run infotainment systems in cars, It is now increasingly betting on software and chips that underpin sophisticated driver-assistance systems.
Mercedes-Benz Group AG recently tapped Nvidia's platform for its EV production.
PART B:
Describe the organizational structure, which would best accommodate the combined entity. You can use terms like centralized/decentralized, organic/mechanistic, departmentalization, specialization, bureaucracy, etc. Would you recommend an ambidextrous organization?
What strategies have Foxconn and Nvidia have implemented individually and collectively? Specify which strategies can lead to further growth of the combined entity. You can make use of terms such as integration, competency, unification, diversification and concentration.
PART B:
Explain the concept of open systems theory in the context of organizational structure and describe how it can be used as a strategic tool for a company looking to become more innovative and adaptable to change in the marketplace.
Consider the case of a developed team, where all members have been socialized and highly cohesive. How does the organization benefit from this situation? What are the potential drawbacks?
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managing Information Technology

Authors: Carol Brown, Daniel DeHayes, Jeffrey Hoffer, Wainright Marti

7th Edition

132146320, 978-0132146326

More Books

Students also viewed these General Management questions