Analysing engineering product Essay Example | Topics and Well Written Essays - 1500 words

Analysing engineering product - Essay Example omotive components division is the largest of the three business areas which employs 60% of the workforce and most of its business comes from its overseas divisions. The case study focuses on this business area of the company. The automotive components division is also first tier supplier to multinational final producers of automobiles and 49% of its sale comes from Europe and mostly from Germany, France and Spain where 69% of its overseas workforce is employed. In the recent years, looking at the demands of its customers, the company has standardised the production lines and its working practices in all its sites worldwide. The main reasons being that though the cars sold in different countries may vary slightly, they are nevertheless produced in similar manner thereby necessitating the need for same specifications for the components of the cars in different countries. The company has been persuaded to standardize because most of its clients are multinationals who have their business spread through out the world. internalization; MNEs are the vehicle through which production has become international and factors of production such as management, labor and technology have become mobile internationally† (Stopford and Strange 1991).Multinational companies have the advantage of operating their business in different countries throughout the world with the same standard and efficiency. Hence they mostly prefer those companies as their suppliers which can provide product or services that have same specifications worldwide and can be freely used by any or all of their globally located operations. Engineering Product Company has thus managed to gain multinational customers by standardising processes in their production lines in different countries. The restructuring, integrated and streamlined the administration and production lines of its various sites across the globe. All the previously broadly decentralised plants have now been brought under a common code of