ENGINO Toys: Staying In China or Moving to Europe?

ENGINO Toys: Staying In China or Moving to Europe?

Olga Kandinskaia Business Case Journal
January 01, 2015
SKU: BUS-00607

Region of the world: Africa
Topic: Strategy & General Management
Page length: 10
Keywords: capital budgeting, investment appraisal, financial modeling in Excel, strategy
Price: $4.00 | €0.00
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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?