Case Discussion Questions

1. Consider the two categories of products that Timbuk2 makes and sells. For the custom
messenger bag, what are the key competitive dimensions that are driving sales? It its
competitive priorities different for the new laptop bags sourced in China?

Ans -1 )

For the custom courier sack, the key serious measurements that are driving deals are quality and
speed. Timbuk2 are extremely glad that their custom courier pack are entirely strong. The
interaction nature of Timbuk2's client courier packs are truly dependable and not inclined to
surrenders. Also, the plan nature of Timbuk2's custom courier sacks are uniquely designed to
accommodate clients' longings. The plan nature of Timbuk2 give clients a feeling of eliteness in
realizing that their pack might be the lone kind in presence. The conveyance speed of Timbuk2's
custom courier pack to their clients is a basic serious measurement. Base on the data giving, the
request custom sack is customized to the specific particulars of the client and sent by means of
for the time being conveyance straightforwardly to the client in two days. Great quality and fast
conveyance is the most ideal approach to get clients' dedication. The

From my arrangement, I accept that Timbuk2's serious needs are something very similar for the
new PC packs as the custom courier sacks, with quality being their top serious need for the new
PC packs. However, since the new PC sacks are made in China, the conveyance speed would
not be pretty much as fast as the custom courier packs that are made in San Francisco. Like the
custom courier packs, the new PC sacks are as yet specially crafted base on the determinations
of the client. Despite the fact that the new PC packs are produced in China, the planned are still
in San Francisco, where highlights and particulars that made Timbuk2 a serious market. I can
just assume that the new PC sacks are made with a similar top caliber as the custom courier
packs since Timbuk2 visits the China production line each four to about two months for
examinations. Base on the data giving, Timbuk2 claims that interest for the custom courier sacks
are still high and individuals are raving about the new PC packs. One can just think that
Timbuk2 serious needs for the new PC sacks are equivalent to the custom courier packs, less the
conveyance speed I expect.

2. Compare the assembly line in China to that in San Francisco along the following dimensions:
(1)volume or rate of production, (2) required skill of the workers, (3) level of automation, and
(4) amount or raw materials and finished good inventory.

Criteria China Plant San Francisco Plant

Volume / rate of production High Low
Required skill of the workers Medium-High High and Diverse
Level of automation High Low
Amount of raw materials Lower Higher
Finished goods inventory Higher Lower

Ans -2)
on the above table, it is seen that China would have a high volume/creation rate contrasted with San
Francisco because of the way that work costs are lower (more specialists); not at all like San Francisco
where the quantity of laborers is 25, work costs being high, and thusly the creation of PC packs in this
plant would deliver the organization to be less serious in evaluating. The Chinese plant is delivering more
Units/$, introducing lower producing costs paying little heed to the higher number of work and gear hours
consolidated.

Then again, the measure of completed merchandise stock will be higher in the China plant when
contrasted with San Francisco which applies lean assembling measures. As a result of the distance factor,
this is unavoidable; the compromise is on the high volume/high creation rate and lower work costs. This
likewise empowers the China plant to lessen dispatching costs via air freighting mass load toward the
North American getting point (Distribution Center), after which the payload will be separated and
rerouted to their pertinent objections. The San Francisco plant utilizes ground and overnight air freighting
to territorial clients and global clients to indicated conveyance times. When contrasted with volumes yield
versus transportation costs, the San Francisco plant would have a higher proportion.

3. Which generic strategy will you prefer for manufacturing at San Francisco and in China? Justify
your choice.

Ans-3 )
Other than assembling cost, when settling on the sourcing choice Timbuk2 additionally needs to think
about the expenses of transportation/dispatching from the outside country to the US, giving exceptional
consideration to the lead time/travel time; and furthermore the traditions and tax collection costs caused
up and down the chain on the item arrival in the US. It is significant that Timbuk2 completely survey
every one of these expenses so they have a right image of the expense of the item arrived in the US.

Different components that additionally sway on the sourcing costs and that Timbuk2 needs to consider
are:

- the high inventory material quality expense and accessibility.

- environmentally amicable crude materials.
- reliability and long haul relationship with providers.
- the consistence with Timbuk2's approach on moral working conditions at the assembling plant.
- dealing with reasonable exchange providers that would likewise give moral working conditions to
their representatives.