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Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) Description

While much of the work on outsourcing to China focuses on the low cost and its tradeoffs, this case examines in depth the interaction between human capital and a firm's cost and capabilities. Suitable for the MBA, EMBA, GEMBA, and executive education programs, the case presents a manufacturer of semiconductor assembly equipment looking to achieve growth in its wire bonding tools segment-in particular, capillaries and dicing saw blades-through geographic expansion. At the time, it manufactured capillaries in Yokneam, Israel, and blades in Santa Clara, California. In the A case the team is charged with designing and opening a new facility in Suzhou, China. Expanding operations to China meant cost savings, and it was where K&S's market had expanded. But it wasn't clear whether it made sense to move the capillary process, the dicing blade manufacturing, or both. And if K&S did move to China, should it keep the Israeli- and American-based factories open as well? And once those decisions were made, what exactly would the knowledge transfer look like?


Case Description Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A)

Strategic Managment Tools Used in Case Study Analysis of Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A)

STEP 1. Problem Identification in Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) case study

STEP 6. Recommendations Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) case study

STEP 7. Basis of Recommendations for Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) case study

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Case Analysis of Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A)

Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) is a Harvard Business (HBR) Case Study on Technology & Operations , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Technology & Operations, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A), is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Technology & Operations Solutions

In the Texas Business School, Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A)

Step 1 – Problem Identification of Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) - Harvard Business School Case Study

The first step to solve HBR Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Capillaries Dicing is facing right now. Even though the problem statement is essentially – “Technology & Operations” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Capillaries Dicing, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A).

The external environment analysis of Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) case study. PESTEL analysis of " Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A)" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A)

To do comprehensive PESTEL analysis of case study – Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A)

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A)

Government policies have significant impact on the business environment of any country. The firm in “ Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Capillaries Dicing is operating, firms are required to store customer data within the premises of the country. Capillaries Dicing needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Capillaries Dicing in case study Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A)" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Capillaries Dicing in case study “ Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Capillaries Dicing in case study “ Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A)

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Capillaries Dicing can compete against other competitors.

Government Scheme & Subsidies Impact on Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A)

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A)

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Capillaries Dicing needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A)

Social Factors that Impact Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A)

Technological Factors that Impact Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A)

Environmental Factors that Impact Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A)

Legal Factors that Impact Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A)

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) case study. PESTEL analysis of " Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A)" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Kulicke and Soffa Industries Inc. in China: Transferring Knowledge (A) case study solution

Amanda Watson

Amanda is strategy expert at Texas Business School . She is passionate about corporate strategy, competitive strategy, game theory, and business model innovation. You can hire Texas Business School professinoals to revolutionize your strategy & business.

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