Global Strategy And Operations

10 Pages 2434 Words

For companies that are planning to globalize, they must have a strategy and plan for operations. To recap, Pyramid has lost a large amount of market share since the 9/11 tragedies and airline downsizing. Their ground proximity warning system was the “Mercedes Benz” of the industry. And airlines do not want to expend the money when they can purchase a comparable product cheaper from Tyco or Honeywell. Pyramid has decided to enter a joint venture with Siemens and relocate their manufacturing plant to Mexico. This paper will cover the mode of entry and explain human resources management, supply chain management, information technology, research and development, and finally, address any ethical issues pertaining to Pyramid’s products and services.
Pyramid Enterprise has previously established entry into the aerospace market with their ground proximity warning system. Pyramid Enterprises first started in the aerospace business 1964. Their decision to embark on a new joint venture with Siemens has been previously discussed and justified. The critical question is how will this joint venture enable Pyramid to win back the market share that they have lost and to expand in a mature and competitive market place? Pyramid has seen its sales and customer base drop by 38% since September 11, 2001. As discussed earlier, the airlines have seen tremendous losses and are looking for the lowest priced Ground Proximity Warning System. Brand loyalty due to quality and reliability has been replaced with bottom-line economic decisions.
Therefore, Pyramids challenge is to develop a strategy that will not only win back their previous customer base but to find ways to expand their presence in the aerospace market. The joint venture with Siemens will allow Pyramid to do both. As a result of the joint venture with Siemens, operating costs will be reduced by 25%. This will enable Pyramid to reduce the price for their Ground Proximity Warning System and to u...