From Telco to Techco: Globe’s dual transformation

GENEVA (SWITZERLAND), AUGUST 2021. There was a lot at stake for Sébastien. This was the culmination of his 18-month NCA supported search journey to find a company to acquire. Instead of a single target, he was now faced with the prospect of acquiring 4 separate companies at once, consolidating them into a group. One, SAS, was bigger than the others but also faced significant financial issues. Hopefully he had identified three additional companies as acquisition targets, all profitable and with low levels of debt but individually a bit too small. Should he pursue all three as a single deal or add SAS for a four-company deal? In a last-ditch effort to figure out the best deal configuration, he ran some simulations about the potential returns of the group with and without the SAS turnaround. With those projections in hand, it was time to finalize the management buy-in proposal to present to the investment committee the following week.

Foxconn, a Fortune Global 500 giant and the world's largest electronics manufacturer, made headlines in 2023 by announcing a shift to a five-day, eight-hour workweek in its Chinese factories - a significant departure from its long history of extended work hours and grueling conditions. While this decision was celebrated by labor advocates as a critical step toward improving work-life balance, it sparked a complex debate among Foxconn employees. Many workers had come to rely on overtime pay just to make ends meet, as their basic wages barely covered essentials like rent and food. Foxconn had long faced criticism for pushing its workers to the brink, most notably in 2010, when 17 employees in China attempted suicide by jumping from company buildings, resulting in 14 tragic deaths. Despite this devastating toll, Foxconn's business growth remained unshaken. The company’s rise from a startup to the world’s largest electronics manufacturer is deeply intertwined with China’s massive influx of domestic migrant labor, where millions move to urban areas in search of better opportunities. This case delves into the reality of labor on Foxconn’s frontlines, exploring working conditions, compensation and living accommodations, as well as the far-reaching aftermath of the tragedies that shook both Foxconn and its clients, such as Apple. Beyond China, Foxconn’s global operations have faced similar scrutiny, and as the company expands into regions like India, it confronts new challenges. Cultural and regulatory differences further complicate its labor issues. This case highlights the critical tension between safeguarding worker dignity and well-being while meeting the relentless demands for productivity - whether in developed or emerging economies. As Foxconn continues to evolve and reshape its labor practices, the question remains: How can companies maintain profitability while ensuring the dignity, safety and well-being of their workforce?

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