ENGINO Toys: Staying In China or Moving to Europe?
The ENGINO case presents a decision situation. ENGINO was a small company based in Cyprus. The company produced educational construction toys. During 2007-2011, the company outsourced the manufacturing in China. ENGINO construction toys became an international success and won numerous awards. In 2011, the owner, Costas Sisamos, became concerned with the growing production costs in China and began searching for alternative solutions. His idea was to bring the manufacturing to Cyprus, his homeland. However, Costas was worried whether the company would be financially viable in Cyprus. Continuing to outsource in China seemed a safer choice while the decision to move to Cyprus would be most unorthodox. This strategic decision would have a major impact on the company’s future. Should he stay in China or should he move to Europe?
- Demonstrate knowledge and comprehension of the specific non-financial considerations that would be critical in this case (Question 1), and of the investment appraisal theory (Questions 5 and 6) (Bloom’s Taxonomy learning outcome levels 1 and 2)
- Construct cost calculations in Excel (Questions 2 and 3) (Bloom’s Taxonomy learning outcome level 3)
- Perform an analysis of a decision situation after building a financial planning model in Excel (Questions 4, 6 and 7) (Bloom’s Taxonomy learning outcome levels 3 and 4)
- Synthesize what they have learned, evaluate the decision situation, and recommend a specific course of action for the company’s owner (Questions 8 and 9) (Bloom’s Taxonomy learning outcome levels 5 and 6)