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A Case Study Approach on Manufacturing Alternatives in an Emerging Market - Evaluation from a Cost, Flexibility and Risk Management Perspective

Kärner Rendahl, Robin LU and Johansson, Marianne (2012) FEKP02 20121
Department of Business Administration
Abstract
Title: A Case Study Approach on Manufacturing Alternatives in an Emerging Market – Evaluation from a Cost, Flexibility and Risk Management Perspective
Authors: Marianne Johansson and Robin K Rendahl
Supervisors: Charlotta Johnsson, Department of Automatic Control, Faculty of Engineering, Lund University, Sweden
Måns Kjellsson, Department of Business & Administration, School of Economics and Management, Lund University, Sweden
Project Owners: Are Nakkim, Vice President Business Development, Orkla Brands International
Sergey Gaydamaschko, Supply Chain & Technical Director, Orkla Brands Russia
Research Issue: The need for flexibility as ways to risk manage plays a big part in both Supply Chain theories and Manufacturing Strategy. The... (More)
Title: A Case Study Approach on Manufacturing Alternatives in an Emerging Market – Evaluation from a Cost, Flexibility and Risk Management Perspective
Authors: Marianne Johansson and Robin K Rendahl
Supervisors: Charlotta Johnsson, Department of Automatic Control, Faculty of Engineering, Lund University, Sweden
Måns Kjellsson, Department of Business & Administration, School of Economics and Management, Lund University, Sweden
Project Owners: Are Nakkim, Vice President Business Development, Orkla Brands International
Sergey Gaydamaschko, Supply Chain & Technical Director, Orkla Brands Russia
Research Issue: The need for flexibility as ways to risk manage plays a big part in both Supply Chain theories and Manufacturing Strategy. The literature reviewed states that increased flexibility equals higher costs and outsourcing to a low-cost country often means lower production costs. But the literature does not state how these factors change when the company already is operating in a low cost country. The following hypothesis was proposed:

“Flexibility is positively correlated with manufacturing costs in an emerging market”
Purpose: The purpose with the thesis was twofold. First, recommend a cost effective and risk minimising solution to Orkla Brand Russia’s pre-processing issue. Second, test the hypothesis in the settings of the case study at hand.
Method: The method used was a deductive approach. After a literature study a hypothesis could be proposed and tested through a case study.
Conclusion: The study showed that in Orkla Brand Russia’s case it is more beneficial to produce in house than to outsource. The reasons are that it is both more cost efficient and more flexible to produce in house than to outsource production, thus the hypothesis cannot be validated. (Less)
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author
Kärner Rendahl, Robin LU and Johansson, Marianne
supervisor
organization
course
FEKP02 20121
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Outsourcing, Supply Chain, Supply Chain Management, Flexibility, Manufacturing Strategy and Emerging Market
report number
233/2012
ISSN
1651-0100
language
English
id
2608241
date added to LUP
2015-08-19 11:25:54
date last changed
2015-08-19 11:25:54
@misc{2608241,
  abstract     = {Title: 	A Case Study Approach on Manufacturing Alternatives in an Emerging Market – Evaluation from a Cost, Flexibility and Risk Management Perspective	
Authors: 	Marianne Johansson and Robin K Rendahl
Supervisors:	Charlotta Johnsson, Department of Automatic Control, Faculty of Engineering, Lund University, Sweden
Måns Kjellsson, Department of Business & Administration, School of Economics and Management, Lund University, Sweden
Project Owners:	Are Nakkim, Vice President Business Development, Orkla Brands International
Sergey Gaydamaschko, Supply Chain & Technical Director, Orkla Brands Russia
Research Issue:	The need for flexibility as ways to risk manage plays a big part in both Supply Chain theories and Manufacturing Strategy. The literature reviewed states that increased flexibility equals higher costs and outsourcing to a low-cost country often means lower production costs. But the literature does not state how these factors change when the company already is operating in a low cost country. The following hypothesis was proposed:
	
“Flexibility is positively correlated with manufacturing costs in an emerging market”
Purpose:	The purpose with the thesis was twofold. First, recommend a cost effective and risk minimising solution to Orkla Brand Russia’s pre-processing issue. Second, test the hypothesis in the settings of the case study at hand.
Method:	The method used was a deductive approach. After a literature study a hypothesis could be proposed and tested through a case study.
Conclusion:	The study showed that in Orkla Brand Russia’s case it is more beneficial to produce in house than to outsource. The reasons are that it is both more cost efficient and more flexible to produce in house than to outsource production, thus the hypothesis cannot be validated.},
  author       = {Kärner Rendahl, Robin and Johansson, Marianne},
  issn         = {1651-0100},
  keyword      = {Outsourcing,Supply Chain,Supply Chain Management,Flexibility,Manufacturing Strategy and Emerging Market},
  language     = {eng},
  note         = {Student Paper},
  title        = {A Case Study Approach on Manufacturing Alternatives in an Emerging Market - Evaluation from a Cost, Flexibility and Risk Management Perspective},
  year         = {2012},
}