abhishreshthaa
Abhijeet S
Autoliv (OMX: ALIV SDB, NYSE: ALV) is a Swedish-American company with headquarters in Stockholm, Sweden, that in 1997 sprung from the merger of the Swedish company Autoliv AB and Morton Automotive Safety Products, Inc., a division of the American firm Morton International.
Autoliv develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures Autoliv has 80 facilities with 40,000 employees in 30 vehicle-producing countries. In addition, the company has development and engineering centers in six countries around the world, including 20 test tracks, more than any other automotive safety supplier. The company's shares are listed on the New York Stock Exchange and its Swedish Depository Receipts on the OMX Stockholm Stock Exchange.
The company had already outsourced the production process as well as the procurement of the raw materials for the footwear. The main reason behind the said strategy is that the labor and production process in Germany as well as other European countries are too expensive compare to Asia. In addition, the raw materials that are needed for the overall production of the company are also available in Asia. The primary advantage of this strategy is that it enables the company to save by reducing the working capital, more specially in the area of the inventory by 21%. As of now, more or less 70% of the entire logistics of the company are all outsourced.
The main advantage of outsourcing is that it can help to reduce the costs as well as the economies of scale. Furthermore, it can also help the business to concentrate of a given business or specific strategic appreciation of service. It can also help to reduce the space that is needed by the company. Due to the said reasons, the company will be able to improve its productivity as well as its efficiency in terms of operations. In addition, there is no need for specialist knowledge as well as latest technology. It can also help to overcome the different skills shortage and specialist equipment shortage (Barrett & Baldry 2003, p. 158). On the other hands, there are also several disadvantages that must be considered in implementing outsourcing such as the less control over management that is why it is harder to control the outsourcing service provider than controlling own employees of the company. Furthermore, the service of the outsourcing is outside the business that is why it can cause waste of time, money and effort, if one of the outsourcing company gone bankrupt, because the company have to switch to another provider. Above all, outsourcing is sometimes expensive and risky.
Research and development or also known as the R&D is one of the most important aspects in the company. The R&D management and development process of the company is being done in America and Germany. R&D is important because it will handle the innovation process of the company that will help to gain competitive advantage, by giving the customers new products and services and latest development of the company every now and then. This will enable the company to maintain the level of interests of their customers, therefore maintaining its position in the market.
The R&D process of the company is being done in two different places, in America and in Germany. The said strategy will help the company to create new innovations that will cater to the two categories of sports, the American Sports and the European Sports. By doing the said thing, it will enable the company to let the customer feel that their products and services are all made just for their needs and demands.
Autoliv develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures Autoliv has 80 facilities with 40,000 employees in 30 vehicle-producing countries. In addition, the company has development and engineering centers in six countries around the world, including 20 test tracks, more than any other automotive safety supplier. The company's shares are listed on the New York Stock Exchange and its Swedish Depository Receipts on the OMX Stockholm Stock Exchange.
The company had already outsourced the production process as well as the procurement of the raw materials for the footwear. The main reason behind the said strategy is that the labor and production process in Germany as well as other European countries are too expensive compare to Asia. In addition, the raw materials that are needed for the overall production of the company are also available in Asia. The primary advantage of this strategy is that it enables the company to save by reducing the working capital, more specially in the area of the inventory by 21%. As of now, more or less 70% of the entire logistics of the company are all outsourced.
The main advantage of outsourcing is that it can help to reduce the costs as well as the economies of scale. Furthermore, it can also help the business to concentrate of a given business or specific strategic appreciation of service. It can also help to reduce the space that is needed by the company. Due to the said reasons, the company will be able to improve its productivity as well as its efficiency in terms of operations. In addition, there is no need for specialist knowledge as well as latest technology. It can also help to overcome the different skills shortage and specialist equipment shortage (Barrett & Baldry 2003, p. 158). On the other hands, there are also several disadvantages that must be considered in implementing outsourcing such as the less control over management that is why it is harder to control the outsourcing service provider than controlling own employees of the company. Furthermore, the service of the outsourcing is outside the business that is why it can cause waste of time, money and effort, if one of the outsourcing company gone bankrupt, because the company have to switch to another provider. Above all, outsourcing is sometimes expensive and risky.
Research and development or also known as the R&D is one of the most important aspects in the company. The R&D management and development process of the company is being done in America and Germany. R&D is important because it will handle the innovation process of the company that will help to gain competitive advantage, by giving the customers new products and services and latest development of the company every now and then. This will enable the company to maintain the level of interests of their customers, therefore maintaining its position in the market.
The R&D process of the company is being done in two different places, in America and in Germany. The said strategy will help the company to create new innovations that will cater to the two categories of sports, the American Sports and the European Sports. By doing the said thing, it will enable the company to let the customer feel that their products and services are all made just for their needs and demands.