Scenario – Background information

Fisher & Paykel Factory Relocation to Thailand Friday, 27 April 2007, 11:33 am Press Release: Fisher and Paykel

Fisher & Paykel Appliances (FPA) plan to relocate part of its manufacturing operations to Thailand.

Production facilities for the Smart Drive® and AquaSmart® washing machines and clothes dryers, both currently located in Auckland, New Zealand, are to be moved to a purpose built facility in Thailand.

A number of factors have contributed to this decision. Competitors are already supplying laundry products to the Australasian market from low cost countries like China, Thailand and South Korea.

The relocation of facilities will take place over the next 12 months. The move will involve shifting plastic injection moulding machines and dies, fabrication equipment, assembly equipment and metal pressing facilities.

The expected financial benefits are in the vicinity of $10-$15 million per annum, at a one-off cost in the order of $20-$25 million. Additional cost savings are also expected from the sourcing of some raw materials and purchased parts from local vendors in Thailand.

The relocation will lead to an estimated reduction in the Auckland based work force of approximately 350 positions. Fisher and Paykel will endeavour to accommodate as many staff as possible elsewhere in the organisation as vacancies arise.

“The decision to move the Laundry plant out of New Zealand wasn’t one that was taken lightly,” said John Bongard, Chief Executive Officer and Managing Director. “Most of our competitors supplying the Australasian market do so from facilities in low cost Asian countries which offer generous manufacturing incentives. Also the environment in New Zealand for our type of manufacturing operation has deteriorated due to a combination of factors, such as high interest rates, persistently high exchange rates and some trade and tariff policies. Our laundry margins have suffered considerably over the past 4-5 years. Without this relocation to Thailand our continued future in Laundry design and manufacture would be doubtful.”

“The ongoing research and development for these products will continue to be based in New Zealand,” says John. “We must persist in pushing the innovative envelope for our products in order to stay ahead of the game. We cannot afford to be a me-too company. If we don’t continue to innovate, we won’t survive, but in order to do this, we also need competitive manufacturing facilities. This is what this move is addressing.”

The Thailand plant continues Fisher & Paykel Appliances push for international expansion, being the fourth offshore manufacturing facility in recent years. It follows the acquisitions of DCS Inc in the USA and Elba SpA in Italy, and the relocation of the in-house laundry and motor production facility to Clyde, USA.

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Fisher & Paykel. (2007) Fisher & Paykel Factory Relocation to Thailand [Press Release]. Retrieved October 3, 2018 from http://www.scoop.co.nz/stories/BU0704/S00396.htm

Your Role

You are the Communication Officer for Fisher & Paykel Appliances Ltd (FPA) and have been asked by the CEO John Bongard to produce a Business report. You are to investigate a range of communication methods available along with your recommendations as to the preferred methods of communication to FPA stakeholders.

Part A – Individual Business Report 40 % (LO1, LO2, LO3 & LO6)

Task 1

Using the scenario above you are to take on the role of Communications Officer for Fisher & Paykel Appliances Ltd (FPA) and write a Business Report which investigates and make recommendations on suitable business communication methods to FPA stakeholders advising them of the decision to relocate their factory to Thailand.

(6 points)

NB. Ensure that you have:

 A logically structured report,

 use the correct formatting

 Use appropriate language, spelling and grammar.

Present your report appropriately with the following sections included:

 Cover page

 Executive Summary

 Contents

 Main Body

 Recommendations/conclusion

 Appendix

Your Business Report must include the following: –

i. A description of two (2) types of verbal communications suitable to communicate to FPA stakeholders e.g. meeting one-on-one, group presentation, radio/TV interview, and describe the two (2) advantages and two (2) disadvantages of verbal communications to enhance stakeholder relationships. It must include the appropriate use of four (4) non-verbal communication techniques.

(10 points)

ii. A description of four (4) types of written communications suitable to communicate to FPA stakeholders, e.g. memo, press release, letter, email, web page, and poster and describe the advantages and disadvantages of written communications in this context.

(12 points)

iii. Examples of two (2) (At least one must be technology based) of your own written communications to FPA stakeholders.

 Content relevant to the FPA stakeholder.

 Both your written communication examples must apply bi-culturalism of New Zealand with the use of Maori greeting and sign off (e.g. Kia Ora, Nga mihi).

 Both pieces of writing must have appropriate formatting and conventions

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 (E.g. Letter format/Email format or other appropriate formatting)

 Both pieces of writing must include professional language, ethical and behaviour.

 Use of appropriate English skills (Grammar, usage, punctuation and spelling).

(2 written examples 6 + 6 for language = 12 points)

iv. An application to the scenario of two business communication models.

Discuss each of the business Communication model with appropriate referencing and apply the model to the case study.

 You are expected to give the main characteristics /features of the communication model.

 Apply these features to the scenario and reference it correctly by using APA referencing.

(10 points)

v. Discussion of three (3) barriers to successful communication FPA would need to consider with four (4) methods to overcome these barriers.

 Discuss 3 barriers in communication

 Apply each barrier to scenario(Barrier + application to FPA -3×2=

(6 marks)

 Provide 4 methods to overcome each of the barriers (4 Marks)

(10 points)

vi. Recommendations and justification of four (4) different communication methods suitable to a variety of stakeholders in the scenario. Your recommendations must include a mixture of both verbal and written communication, and should consider ethical behavior that FPA should show when communicating with their individual stakeholders.

Ensure your recommendations on the appropriate communication method(s) includes the right ethical behavior that FPA should consider when communicating with their individual stakeholders.

Give reasons for your choices and highlight the ethical behavior to justify your choices of communication(s).

(10 points)

Part B – Individual Presentation 30 %( LO1& LO3)