BUSS4: Manufacturing in the UK

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JLR: Jaguar Land Rover

  • All cars are designed and engineered in Britain
  • Land rover hold over 50% of the premium SUV industry and jaguar are one of the fastest growing premium brands with a four-fold increase in sales in2013. By joining they get the premium image of jag with the vast market share of Land Rover and eliminate a competitor (mergers and acquisition)
  • Biggest investor in research and development in manufacturing sector

  • Just started construction of the £750m production facility in brazil and plans to build an overseas education in business programme (CSR) brazil is one of their top ten markets so they can cater to them and save on import costs (globalisation/ emerging markets)

  • opened a factory in china last year to manufacture the Range Rover Evoke, the biggest selling model in china (1 in 5 evokes are sold to china) where they have committed to training 2,000 people in health and safety and problem solving regardless of the rising wage à in the last year china was JLR’S single biggest market selling over 100,000 models (globalisation/ location/ opps and threats/ CSR/ unemployment)
  • Opened up a production facility to manufacture engines

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JCB

  • Sell products in 150 countries
  • Family owned business with unrivalled customer service

  • Produced a fundraising pink digger to help fundraise for 2 hospices for tinkled pink

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Rolls Royce

  • Manufacturers engines for over 35 commercial aircrafts and has over 12 000 engines in use around the world- selected by Turkish airlines to supply engines worth £300million to power 4 airbus’s (diversification-Ansoff)

  • Powered 2 fjord line ferries with a natural liquefied gas to make them the most economically friendly

  • Sales have quadrupled in past 5 years to selling almost 5 000 models last year

  • Opened new technology logistics centre in west Sussex

  • reputation for being high quality

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Unilever

  • Recently acquired REN skincare, an iconic British natural skincare brand

  • Acquired best foods and became a leader in the culinary category (mergers)

  • Lead the homecare and personal care market in the majority of the world

  • Own 40 brands, 16 of which are market leaders e.g. Persil, dove, lynx (M&A)

  • Responded to market demands and developed flora proactive; a spread to help lower cholesterol (modern business; growing concern for health; opps and threats for business manufacturing in the UK)

  • Annual UK sales of nearly 2.5 billion euros

  • Contribute £8million to projects in the UK including health, the arts and education (CSR)

  • Manufacturing and production sites all around the UK with HQ in London (location)

  • Applies for the most patents each year in UK (innovation/ market leader with reccord sales innovation guarantee success)

  • Achieved a 100% traceable certificate for their palm oil products (business ethics/ corporate image)

  • Revolutionary shower gel innovation from DOVE which improves skin condition- customers 97% likely to recommend VisibleCare to others (innovation leads to success)

  • Innovators at Unilever have found a way to make ice-cream healthier with ice structuring protein- good for the growing health conscious market (opps and threats/ technology)

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GlaxoSmithKline (GSK)

  • 84 manufacturing sites In 36 countries (globalisation)

  • Set target to reduce carbon footprint by 25% and water usage by 20% and zero waste to landfill- this enables them to reduce costs by reducing waste and also create a good CSR image to fit in with their strategy to help people; CSR is essential to reinforce their brand image andallow them to be more competitive

  • Adopted a continuous manufacturing method and reduced sizes of batch and machines to save time, effort and money on cleaning and recharging the machines, equally as effective but with less waste and a 52% reduction in carbon footprint (CSR)

  • Increased pack size by 25% by increasing the amount of tablets in each pack without altering the actual size, this reduced waste, offered more to customers and reinforced their good brand image  (innovation/technology)

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BAE

  • UK turnover of £8.2billion last year (CONTRIBUTED £3.5BILLION TO UK ECONOMY)
  • Investing in a new training facility and hiring 800 apprentices with extra vigorous entry requirement so they can get the best potential engineers available and train them up to avoid competitors taking these trainees and using them to their competitive advantage

  • The apprentice scheme is award winning so more attractive to the best workers to get the best minds working on innovation and gain competitive advantage (opps and threats; skills in the UK; higly skilled labour available as oppose to cheap low skills in China)

  • Have been awarded a contract to manage obsolete parts by using an advanced component obsolescence management tool (AVCOM tool) to forecast when a part will become obsolete or too expensive so that they can quickly find a replacement. Helps the product live its full life cycle and can extend it to reduce the need to replace the whole product. This would appear to be bad for BAE as they are reducing repeat sales however the project is valued at about £37million for 3 year trial and customers are more likely to sign contracts with BAE as they can offer more value and support. (technology)

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Trunki

  • Main head office is in Bristol and contains a slide and play room for the children to play on when they visit (culture)

  • Had issues with a china based company PMS international who developed a highly similar design ‘kiddie cases’ to Trunki but were not found to have infringed any design rights. They are now able to produce cheaper alternatives with more designs available than Trunki. Their success encouraged other firms to enter the new niche market that they created (ride-along luggage) and now Trunki faces competition from Chinese firms that can offer a cheaper alternative. (globalisation/ location/ opps and threats ; IP is better in UK)

  • Re-shored production from china even though the UK is more expensive; they are better able to control costs. The Chinese labour cost has tripled in the past 6 years so there is no knowing how far it will increase. China also have more flexible IP theft laws. (globalisation/ location)

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Dyson

  • Moved production from china to Malaysia for lower labour costs and also to be closer to overseas markets and suppliers- this resulted in a loss of 800 jobs (location/ globalisation)

  • The air multiplier bladeless fan cost £200million to develop but there are 100 infringements over 20 countries due to china’s low intellectual property (IP) protection (location/ globalisation/ opps and threats)

  • Found a way to minimise environmental impact by using tight packed recycled cardboard to package products- the smaller packaging allows them to fit more products onto a shipping container, they have increased container utilisation from 70% to 97% reducing transportation emissions (location)
  • Invested £15million into Sakti3 an upcoming technology firm that is developing a small innovative battery that will improve Dyson’s products and allow them to add value and eliminate the treat of competitors investing in this tech and diversifying themselves (mergers and acq)

  • The new tech investment also allows them to diversify away from just vacuum’s into anything battery powered (Ansoff- diversification)

  • Expanded into air purifiers and hand dryers—diversification

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Dyson...cont...

  • Developed bagless technology to reduce waste in landfills (CSR/ business ethics/ technology- good for modern markets who are growingly concerned about the enviroment- opps and threats)
  • Dyson air blade uses less energy by creating a blades that scrapes water not a conventional hand dryer (technology)

  • Ensure that all suppliers sign their strict CSR code and ethics guidelines (CSR/ ethics)

  • Adopted lean productions methods and flexible manufacturing systems (flexible machines and moulds); reducing energy use (technology/ ethics/ opps and threats)

  • (Kaizen or TQM) Moved robotic arms slightly resulted in 30 second faster cycle time and reduction in rejection rates and less waste when painting components for air multiplier

  • Uses just in time to improve efficiency because they produce a vacuum cleaner every 3.3 seconds so without just in time they would have a huge build-up of stock and could be highly inefficient and cause stock damage of obsolescence

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Toyota

  • Toyota use lean production and kaizen circles to address each and every issue together and come up with a solution. This makes them one of the most trusted reliable and desired brands

  • Use simultaneous engineering to become more efficient and shorten lead times and become the most highly valued brand In the market (lean production)

  • Named the worlds greenest brand by interbrand which combines environmental performance with public perception of the brand- this is highly significant as customers view the brand as ‘green’ and modern society has a growing awareness of the environment so this can give them a good head start by building a reputation amongst customers as being green so as the awareness develops Toyota have the first mover advantage (ethics/ opps and threats)

  • The green label coupled with their development of hybrid cars gives them an advantage as the electric car market grows they are viewed as ‘extra green’ almost a consolidation that they are the best green car in market as the niche grows more saturated

  • Japanese company but they build in Britain and have invested £2billion into manufacturing sites in the UK creating more than 3000 jobs- the auris hybrid is made in the UK with most parts supplied from UK so lead time is reduced and they have a ‘homemade’ label for British customers and the ability to meet orders faster (globalisation/ location/ opps and threats(lead time))

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BAE...cont...

  • provide intelligence and security services to manage big data, inform big decisions, and support missions; delivers a broad range of solutions and services to enable the U.S. military and government to recognize, manage, and defeat threats
  • Use 3D printing across the business; use it to manufacture parts for RAF ground support saving them time and money when repairing their aircraft projected 4 year savings of £1.2 million for the RAF through 3D printing (adds value; important in the modern competitve enviroment when technology is becoming saturated) (technology)
  • Labour turnover is 2.46% the industry average (new skills and innovation all of the time, could also mean dissatisfied employees)
  • Generated £3.4billion in exports in 2012
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JLR...cont...

  • Invested 50million into an initiative that supports underprivileged young people and lifestraw (CSR
  • Announced sales increase of 13% earlier last year as a result of all of this
  • 3D printers had reduced time and expence involved in making new veichles
  • use of alluminum allows for lighter more eco-friendly cars (good for the growing awareness of the enviroment in modern business)  (technology)
  • test centres around the world ensures that they meet customer expectation (reduces costs of recalls and meets customers needs better)
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