AFM333 Lecture Notes - Lecture 7: Usability, Mercedes-Benz 500K, Offshoring

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Role: mikael tghinghus, coo of the company (handles operations) Request: where to establish production facilities, marketing efforts, optimize global value chain. Good quality shoes using latest technology, materials, knowledge. Comfort, design, perfect fit for work and leisure. Women 47%, men 30%, children 11%, sport 12% Operating factories in portugal, slovakia, indonesia, thailand, and maybe china (good) Tannery in netherlands, two next to shoe production sites in indonesia and thailand (good for maintaining control over leather processing, quality control) lot of control over production (cow to shoe high tech, almost all in house) Offshore (own and operate the manufacturing plant) vs. outsourcing (someone else owns it) 2004: 90% of production exported to us, germany and japan. Research and development center explore new methods that are better for environment, 15 specialists to train other employees. Maintained ownership of tanneries commit to quality. Blurred lines between types of shoes lots of competitors, main competitors 3 are geox,

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