According to the National Center for Education Statistics, the National Postsecondary Student Aid Study (NPSAS), 2012 revealed the following about students attending community college. Student Age Under 20 21% Between 20 and 24 34% Between 25 and 29 16% 30 or older 28% Job While Enrolled in School No Job 31% Part-Time 36% Full-Time 33% a. Con

Case Study Analysis of CX Technology

CX Technology was doing a good business with satisfied level of revenues coming especially from its commodity product such as components of cold forged steel speakers. The stats revealed that company was able to achieve the revenue of $51m in 2007, and they were also sustaining their position as one of the leading manufacturers for the components of cold steel speaker on global scale. Looking at these facts, one can say that business was going normal and overall growth was sustainable. It seems that everything was fine and things were moving in the right direction, but still CX Technology chairman Albert Ting was not completely satisfied. The question is that whether the company was having considerable problems? The overall performance of the company does not validate this question at all that company was facing any problem. It was just the extinct and long term mindset of Ting, which was asking him to look for more diversification as well as expansion of the business.

Apparently, there were no direct problems were faced by CX Technology, but one fact was considerable that competition was increasing with the passage of time. It means that there were things to look at for the company to make sure they remain as one of the leading manufacturers in their industry, and they are not threatened by any competitor. The case revealed the fact that overall business was fine, but the rate of new business was not as high to reassure its current position. It was observed that industry was coming with some viable measures to contain costs and with these relentless efforts by various manufacturers was making life difficult for CX Technology, as margins were slowly squeezing. In such scenario, where things were looking to become more difficult in the future and process was going to be hard for CX Technology to remain as successful as it was.

Keeping this information in context, it can be said that Ting was right in his thinking approach that company should not rely on one line of business and there should be some diversification so that business can be developed further. The first though of expanding to the automotive industry was not a bad option as it is one of the largest industries in the world. However, the after effects of 2009 economic crisis were also evident as one of the famous brands Detroit was looking for government to bailout from this crisis. So, a huge question was there to answer for Ting, whether he should expand to automotive industry or not? It was important to understand for the company that they deal in cold steel forging, which is comparatively an easy process to manage as compared to hot forging and warm forging. They both needs high temperature levels for forging, whereas cold forging could be even achieved at the room temperature.

It is also important to look at the start of the company and how it developed its business so for so that four major diversification options can be recommended in the end. The company started its business in Taiwan by producing bicycle & bullet parts in 1972. Then in late 70s, company felt that they needed a change so they started producing parts and components of speakers. The company remained in this business for more than 30 years and this great experience allowed them to get customers like Harman International, Philips, Onkyo, Panasonic, Payoneer etc. The facts also revealed that 60% portion of the company’s production was serving the industry of automobiles, and remaining 40% portion was consisting of retail sales. Due to high quality, in time supply and great performance, the company was able to get repeated business. The growth and expansion allowed the company to open plants in China as well as Vietnam in 2002 and 1996 respectively. In 2009, the number of employees working for the company was 1300.

Taiwan plant was then turned into headquarter as company has been able to handle its production from other two plants in China and Vietnam. The company also has great capabilities to achieve competitive advantages. With these best capabilities, the company has been able to sustain their growth and success for such a long time as they deliver quality and high performance. The sales and marketing efforts have not been that efficient as other business departments have been, therefore company did invest in its marketing efforts so that more efficiency can be achieved with the passage of time. Regardless of the all the good numbers, revenues, stable success and sustainable business, Ting still knew that diversification was indispensable for the company. They must penetrate into at least two other markets so that business can be developed as revenue was getting flattened, and CAGR of the company observed decrease to 11%, which started from the level of 29%.

So, looking at different options for the company according to its business line, various recommendations can be made to Ting that CX Technology can expand to various other markets and industries. The first diversification option for the company is to expand their business to automotive industry. Now, it is important to look at some facts to know that why this option is considerable despite the fact that industry is facing various issues after the economic crisis of 2009. Ting should realize the fact that automotive industry is a huge one on global scale and it is one of the largest industries. There are so many giants in the business and if CX Technology can gain some business relationship with these giants, they can achieve so much in the future. If they can join hands with production units of biggest automotive industries of the world, then company can get great business for longer period of time. The joint ventures or any such business partnership in automotive industry will also to penetrate in this industry, and if everything goes fine, the company can experience huge success in the coming years.

The second considerable option for Ting is to look for specific markets around the world. And the most crucial opportunity is to go for U.S market. Being one of the leading economies of the world and headquarter for hundreds of business giants, U.S market is a best option to consider. The company can look to join hands with companies like Chrysler, GM and Ford Motors, as well as foreign manufactures such as Honda & Toyota, who are also based in U.S. The size of U.S industry is huge and if they can get a tiny portion of business in the beginning, it can create countless opportunities for the future. The companies in United States are looking for suppliers who can provide different components at lower process, as their profitability has been decreasing. It means that company can certainly consider for United States automotive industry. The third diversification option for the company is to target one of the largest and fastest growing economies of the world, China. The automotive industry in China is still young and it is still growing regardless of 2009 financial crisis.

The company can expand their plants in China as they can benefit from they already have their presence in China. They can make joint efforts with Chinese automotive industry to look for new business opportunities. They can look to target different sectors of China along with automotive industry as China has huge potential in so many ways. They can also do the same for Vietnam as well, because they already have their presence over there. The fourth option for Ting is to consider is that they should look for business line other than cold forging of steel. Various industries needs hot and warm forged steel as well, so they can use their prior experiencing in steel business to expand their business line by starting warm and hot forging steel. All of these diversification and business expansion options offer great opportunity for CX Technology, and Ting should invest in more research to further explore these options.