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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, Jan Wednesday Nvidia and Foxconn Join Forces on Electric Vehicles BY SABELA OJEA
Graphics chip maker Nvidia Corp. is partnering with electronicscomponent 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 systemonachip, 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 US auto industry is in the midst of one of its biggest factorybuilding booms in years, fueled largely by the shift to electric vehicles, among other trends. The global auto industry plans to spend a collective $ billion on electric vehicles through 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 electriccar 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 sovereignwealth 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 $ million in Lordstown Motors Corp an EV startup that is building its first allelectric 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 driverassistance systems.
MercedesBenz 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 centralizeddecentralized organicmechanistic 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?
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