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Unisys corporation: Europe and Africa division

Author: Yücesan, Enver ; Ruzza, GiacomoINSEAD Area: Technology and Operations ManagementPublisher: Fontainebleau : INSEAD, 1995.Language: EnglishDescription: 19 p.Type of document: INSEAD CaseAbstract: The case describes the dilemna faced by the managers of the Europe and Africa Division (EAD) of Unisys Corporation. The challenge is to reduce operating costs while improving customer service. Unisys is among the five companies in the world capable of producing a complete range of computers from powerful mainframes to personal computers. These are two important trends that affect Unisys. On the technological side, considerably more powerful and cheaper personal computers and workstations comprise a formidable competition for large mainframe computers. On the market side, personal computers are rapidly becoming commodity products, which put an enormous pressure on price and delivery performance. It is within this climate that the EAD managers will have to improve customer service and cut operating costs. An initiative to streamline the distribution network within Europe is on the table, which calls for the streamline of the logistics operationsPedagogical Objectives: The focus is on the management of the supply chains. The trade-offs between operating costs, inventory investments, and customer service are discussed. The organizational structure is also evaluated with a view to assessing the adequacy of the existing structure with respect to the vital processes of procurement and customer order delivery.
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The focus is on the management of the supply chains. The trade-offs between operating costs, inventory investments, and customer service are discussed. The organizational structure is also evaluated with a view to assessing the adequacy of the existing structure with respect to the vital processes of procurement and customer order delivery.

The case describes the dilemna faced by the managers of the Europe and Africa Division (EAD) of Unisys Corporation. The challenge is to reduce operating costs while improving customer service. Unisys is among the five companies in the world capable of producing a complete range of computers from powerful mainframes to personal computers. These are two important trends that affect Unisys. On the technological side, considerably more powerful and cheaper personal computers and workstations comprise a formidable competition for large mainframe computers. On the market side, personal computers are rapidly becoming commodity products, which put an enormous pressure on price and delivery performance. It is within this climate that the EAD managers will have to improve customer service and cut operating costs. An initiative to streamline the distribution network within Europe is on the table, which calls for the streamline of the logistics operations

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