Power Quotient International: Company Analysis Essay

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Company Background

PQI is a Taiwan based electronic firm founded in 1971. The firm was established under the Memory Module Manufacturer Industry. Due to the growth, it moved to other lines like flash memory cards, DRAM drives, flash disks, and portable hard drives. The company expanded and managed to appear in the Taiwan stock exchange in 2003. The firm grew from then and, in 2008, became the tenth-largest supplier of DRAM modules, flash disks, and memory cards in the world.

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PQI is a well-developed company with manufacturing plants in Taiwan and China. There are other franchises in the world in the U.S, Japan, Korea, Korea, and Hong Kong to the Netherlands. The company has more than 900 employees all over the world. PQI never kept inventory records with the model of assembling to order at use. Inventory of the vital components making the framework of its products kept well (Poom, 2009).

Main product

The main product that PQI limited works on is memory modules. Electronic devices require memories to store data. Integrated circuits and semiconductors are the components that enable data storage (Poom, 2009). The vast range of electronic devices use different types of memory like RAM mainly used in computers but its use is limited to power availability. When power switches off information disappear but HDD drives can store data when power is on or turned off. Flashcards or flash disks as known by many are for communication between the consumer and the operator due to their ease in portability. The device can retain data even when power is off. The company also makes flashcards and memory cards with large storage capacity with a move to counter the consumer needs and expectations (Poom, 2009).

Financial Report 2011 (In TWD). (Ft.com/markets data, 2012).

REVENUE7.38 billion
NET INCOME-0.5 billion
EARNINGS PER SHARE-1
CASH1 billion
TOTAL ASSETS3 billion
TOTAL DEBT0.9 billion

Cost Management

The competition requires that cost minimization and profit maximization. PQI used a strategy of comparison among three suppliers to derive a conclusive approach towards cost management. The firm required its suppliers to lay down their costs for easy analysis and cost determination in terms of price. For large quantities ordered, the firm would negotiate a fair price while maintaining profit and consumer confidence (Poom, 2009).

Contract

PQI used performance as a gauge for contract renewal that occurs biannually. The main terms of contract renewal include handling of defective goods payments and clauses behind terms (Poom, 2009).

Supplier classification

The audit of the companies required PQI to set a supply management system that is impeccable. Supplier assessment and categorizing occurs regularly. PQI came up with three categories (Poom, 2009);

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  • Tier 1-form high power suppliers and can supply goods globally. They possess strong technologies, production schemes, and are dominant in the market.
  • Tier two suppliers were regional suppliers that are continental for example Africa and Asia.
  • Tier 3 suppliers were local suppliers whose production and supply localized to a known area.

In conclusion, PQI is a company that has established itself globally and can compete with other players in the market. The strategies used by Power Quotient International enhance its growth while maintaining the customer base. Annual reports on company performances have helped PQI to outdo its competitors (Poom, 2009).

Reference

Poom, H 2009, Management of Suppliers, Asia Case Research Center, Hong Kong.

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IvyPanda. (2020) 'Power Quotient International: Company Analysis'. 30 August.

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IvyPanda. 2020. "Power Quotient International: Company Analysis." August 30, 2020. https://ivypanda.com/essays/power-quotient-international-company-analysis/.

1. IvyPanda. "Power Quotient International: Company Analysis." August 30, 2020. https://ivypanda.com/essays/power-quotient-international-company-analysis/.


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IvyPanda. "Power Quotient International: Company Analysis." August 30, 2020. https://ivypanda.com/essays/power-quotient-international-company-analysis/.

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