The existing financial resources of Jabil Circuit frequently rely too much on particular sources of revenue. The significance of improving revenue-generating capabilities has been demonstrated by this study. The absence of financial and fiscal management at the organization management levels has a significant impact on this. Jabil Circuit must therefore make significant efforts to enhance the functionality and performance of its current and potential new sources of income (Trigaux, 2016).
Different approaches that primarily attempt to address the problem of Jabil's revenue streams typically have an integrated and diversified approach. Alternative solutions may seem to be costly due to high costs of initial investments but in the long run they can provide huge positive results in improving sources of revenue. The provided alternative solutions need to give an analysis that is clear, through and specific of the current situation. The Kepner-Treoe and ProACT models of analysis can be used to provide the best alternative solutions. First of all Jabil circuit needs to reduce their international production in manufacturing plants and China’s facilities of manufacturing need to be among the first point of consideration. The evaluation of Jabil’s human resource practices should be modified to ensure that they abolish unfair labor practices.
The comparative evaluation of green field options and acquisitions for all the potential markets are identified as possible alternative sources of increasing company revenue that could be readily apparent by evaluation of the initial potential growths of the market and this forces the company to evaluate alternative options beyond their conventional wisdom on the industry in respect to expanding its business operations abroad. Amongst the best objectives that can help the company to achieve its goals is to;
reduce the amount of revenue spent on products
reduction of the spending of the workforce to less than $70 million per annum
diversify means of profit
position the company with strategies that promote long term growth
closing of plants and shifting the production to alternative facilities
Create independence from smaller companies that can entirely depended upon for profit.
Viable alternatives in this case could include;
Computer integration
Automation and integration of technology
Refining the process of manufacturing
ProACT Analysis:
Consequences Table Alternatives
Objectives
Computer integration
Automation
and Technology Integration
Refine Manufacturing Processes
Position Jabil for long term growth
Jabil will benefit
Jabil will benefit
Alone will not boost Jabil’s need
Decrease product costs by reducing
product
Current tech can be utilized
Current tech can be utilized
Jabil will benefit
Reduce workforce spending
Current tech can be utilized
It will cost more money
Will reduce spending
Can be adapted to current needs
Diversify means of profit
Jabil will profit
Independency
It will cost more money
Jabil will profit
New processes need development Will alleviate costs
Close plants and shift production to other
New tech can be integrated New tech can be integrated
Jabil will save money
Table 1. The PrOACT table Analysis utilizes a consequences concept table to further evaluate possible alternatives for Jabil Circuit, Inc.
First solution through using K.T. Analysis:
Alternatives:
Tech Integration
Automation
Refine Processes
Musts
1. Reduce workforce spending by at least 70 million each year.
GO
7
GO
10
GO
5
2. Close plants and shift production to other plants worldwide.
8
10
6
3. Decrease product costs by reducing product
GO
NO GO
5
GO
NO GO
7
GO
NO GO
5
Wants
Weight
Rating
Score
Rating
Score
Rating
Score
1. Go Robotic
GO
8
GO
10
NO GO
3
Total =
28
Total =
37
Total =
19
Table 2. The Analysis of possible Decisions for Jabil Circuit using Kepner-Tregoe model (Copyright Kepner-Tregoe, Inc., 1994. Reprinted with permission.)
Alternative Solution two
Besides the idea of reducing their workforce Jabil circuits could consider the redirecting its focus on their primary targeted market bases. 6% of small level business use the commercial supply chain management software in comparison with an averaged 21% of both the middle and large businesses (Burnson, n.d.). Hence an improved manufacturing of circuit boards using digitized modes, improvement of scalable and security software could seem like a better alternative for the smaller businesses. This refers to a wide array of application including transportation management systems, strategic sourcing, procurement, warehouse management systems, and supplier relationship management. Suppose Jabil was able to invest to 8 smaller accounts that could averagely contribute five percent of their total revenue then they could minimize their risk of losing significant revenues to single big corporations. These changes could help diversify the market of Jabil circuit since a broad customer should be a scenario where a single customer can account of ten percent of the total revenue of a company. (Stabler, 2013)
Second alternative solution using the K.T. Analysis:
Musts
Large Business Subscriptions
Outsource Customer Service
Rating
Outsource Design
Increase Sales
Go
Go
1
Go
Diversify Customer Base
No Go
Go
6
Go
7
Wants
Weight
Score
Rating
Score
Score
Rating
Enter Into New Markets
5
5
8
40
40
8
Increase Innovation
2
12
0
14
0
8
Create or Improve Customer Service
3
21
7
0
21
0
Total
38
54
61
References
Stabler, R. (2013, January 2). Increase Customer Diversity, Increase Business Value. Retrieved November 29, 2016, from https://www.divestopedia.com/2/1060/maximize-value/company-premium/increase-customer-diversity-increase-business-value
Burnson, F. (n.d.). Supply Chain Management Software Buyer Report – 2015. Retrieved November 29, 2016, from http://www.softwareadvice.com/resources/scm-buyer-report-2015/
Zacks Investment. "Jabil Circuit, Inc. Stock Sinks on Apple's Latest Move (JBL)." InvestorPlace. N.p., 01 Apr. 2016. Web. 06 Dec. 2016. < http://investorplace.com/2016/04/jabil-circuit-inc-stock-sinks-apples-latest-move-jbl/#.WEc3zuYrKMo>
Robert Trigaux, Times Business ColumistLinkView All Articles. “St. Petersburg’s Jabil Looks to Fresh Markets as Demand Slows for Apple’s Iphone.” Tampa Bay Time. N.o., 11 Nov. 2016. Web. 11 Nov. 20.
Retrieved from http://www.tampabay.com/news/business/corporate/st-petersburgs-jabil-looks-to-fresh-markets as-apples-iphone-growth-slows/2281923
"Jabil | Supply Chain Management, Design Services and Global Manufacturing Partner." Jabil | Supply Chain Management, Design Services and Global Manufacturing Partner
