Gernette Y.

Condez
SYSTHEO K35
Prof. De Los Santos

1. Give a summary on the variables that helped the organization become the "Biggest
Factory in the World" and use the PESTLE Model to elucidate each (Political, Economic,
Sociocultural, Technological, Legal and Environmental)

The variables that contributed to the biggest factory in the world is the employees, the
factory currently has at least 17,000 workers. The workforce is one of the key success of this
factory and having a hard cheap labor costs. Their employees are almost married to EUPA since
they already devote their lives in the company. The location of the factory is near the city and
has 1.8sq/km of land. Another variable is the production process of EUPA, the factory makes
sure that as much as possible there would be no delays in the production and assembly line. They
must ensure that their suppliers will also incur no delays and has a low supply costs.
Mass production is important for EUPA, they make tens and thousands of products each
day. Like for instance, they produce 30,000 coffeemakers per month that will supply the
demands of several coffee places in the world. EUPA is one of the major exporters and
producers in the world and almost every product that will be around will be made in China. They
produce almost everything especially electronic appliances and they also make sure that it is of
quality.
Political
Following Chinas accession to the WTO (world trade organization) in 2001, the Chinese
Government took significant steps to revise its laws and regulations in a manner consistent with
WTO obligations and to strengthen its role in the global economy. China ensures that they follow
the rules and regulations of other countries to still be able to retain being the largest trade country
and major exporter in the world. EUPA contributes to the global economy of China, exporting tens
and thousands of product that supplies the demand of several countries in the world. Following
policies and regulations is a key element for big manufacturing companies such as EUPA>
Economical
While Chinas government may be officially communist, the Chinese people express
widespread support for capitalism and since 2002, the Chinese have consistently been one of the
strongest proponents of capitalism compared with other publics around the world, even more so
than Americans and Western Europeans. China had the largest economy in the world for most of
the past two thousand years, during which it has seen cycles of prosperity and decline. EUPA has
contributed to Chinas economy since it has been a mass manufacturer and large exporter of
products to several countries around the world. EUPA has increased the employment rates giving
several people jobs.

Social
EUPA has a huge population, one worker states that she was worried when she first came
to EUPA since she does not know anyone but after a while she was able to adapt to the environment
and had gained friends in the long run. EUPA also held weddings for their employees since for
Gernette Y. Condez
SYSTHEO K35
Prof. De Los Santos

the company, workers who are married to each other are more loyal to the company. They also
feed their employees since EUPA has restaurants within the vicinity. According to them, it is
important for the employees to have a healthy meal for them to have the energy that they will be
needing for the day. Most of their employees are happily married and has kids of their own.
According to one worker of EUPA, she joined EUPA to escape poverty and make her parents
proud. Most of EUPAs workers devote their lives into the company.

Technological
EUPA as a mass producer of different products always put into action innovation.
Innovation is important to any company since the world is always advancing and changing.
Innovating your products in one way to be a step further from your competitors. EUPA has
trainings and practice for employees for their new prototypes and shall then be approved before
going into production. Innovating products plays a vital role in a manufacturing company such as
EUPA.
Legal
EUPAs workforce counts to at least 17,000 employees. Though EUPA give their workers
cheap labor costs, they make sure that their workers who are still minors get education and housing
provided by EUPA that is only minutes away from the factory. The vicinity has fields that can be
used by their employees as leisure time such as engaging in sports. EUPA also make sure that their
workforce does not incur health problems and they ensure a safe and healthy environmental
workplace.
Environment
The location of the factory is near the city and has 1.8sq/km of land. The factory does not
contribute to any harmful side effects and hazardous change to the environment since it does not
emit any chemicals and anything that can harm the environment. EUPA focuses in manufacturing
products, getting raw materials to their suppliers and assembling it to become a product.

2. Discuss and highlight at least 3 strengths of the "Megafactory" and discuss how you
would enhance their current model of operation.

Training and Guidelines

EUPA has training and guidelines for their employees, they study the history of a product
and how it evolved to what it is now. EUPA train their workers by having a standard lesson
about the product and teaching them on how to assemble it step by step to avoid faulty products.
They will also conduct training when there is a new prototype before going into production.
Mass Production
EUPA also focuses on mass production, they manufacture tens and thousands of products
a day. They make sure that there is no time wasted and ensures that there would be no
Gernette Y. Condez
SYSTHEO K35
Prof. De Los Santos

delays in the assembly or it will affect the whole production process. Producing in a large
scale ensures EUPA that they will be able to supply the demand of the consumers and as
a result of this, they will incur more revenue.

Quality and low cost

EUPA also ensures that their products are produced fast but is of quality. They double
check the products if there are defects and faultiness. When a product has a defect they either
repair it or remove it. It is for them to ensure that the consumer would not have any
complications and danger when using the product. Another is low cost, EUPA make sure that
their suppliers are low cost for their products to be low cost and affordable as well. People
nowadays are looking for fast, cheap and quality products.