Ting, Austin Lee Hwa
(2024)
Driving ESG sustainability strategy in the next era of outsourcing manufacturing industry: the implication for elevating value creation and growth opportunities at Flextronics Ltd
A comparative analysis of Flextronics Ltd and its competitors listed in United States stock exchange market (New York Stock Exchange & Nasdaq) - Jabil Inc, Celestica Inc, Sanmina Corporation.
[Dissertation (University of Nottingham only)]
Abstract
Purpose: This management research project examined the concerned Environment, Social and Governance (ESG) sustainability strategy and implementation efforts can be justified to provide the unique resources and capabilities for Flextronics Ltd (“Flex”) as the case study to create sustained advantage in the highly competitive contract outsourcing manufacturing industry for value creation and growth opportunities. It’s important to note that this industry has potential significant growth opportunities moving from conventional low-margin electronics manufacturing services to high-margin ESG driven markets. The macro-environmental analysis and competitive strengths analysis evidenced that ESG as driving forces of strategic resources can be argued to gain competitive edge for Flex through enhancing corporate reputation, products differentiation, sustainable supply chain resilience, strong stakeholders’ engagement that minimizes negative externalities influence, and eventually leading Flex to outperform competitors in the market.
Methodology: The analysis of Flex ESG performance progression and its financial performance and returns are performed using the past 10-years data from 2013 to 2022 established that the ESG performance has some positive contribution to the financial performance which effective ESG implementation strategy and management could lead to revenue growth, reduce the operating cost to drive better corporate efficiency and shareholders’ investment returns. In order to establish Flex market and value proposition in this industry, a comparative analysis between Flex and key competitors (i.e., Jabil, Sanmina, and Celestica), in similar revenue size and listed in United States Stock Exchange, accounted for substantial outsourcing manufacturing industry revenue, is carried out to evaluate Flex ESG value proposition in the market that elevates value creation and growth, the result suggests that better ESG strategy choices and consistent ESG performance can help the companies to enhance corporate responsibility and firms value through gaining top-line growth, improving productivity and operating cost reduction, propositioning stronger external value to address externalities issues and creating stronger return of investment opportunity.
Summary: Given the competitive nature of this industry, it’s important for Flex to benchmark regularly to its industry peers, identify improvement opportunities to deliver consistent ESG performance to create sustained competitive advantage and be game changer in the industry to seize growth opportunities and enhance its financial performance in high growth ESG-driven markets by leveraging Industry 4.0 technology and demonstrating strong ESG sustainability strategy implementation and efforts.
Item Type: |
Dissertation (University of Nottingham only)
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Keywords: |
ESG performance indicators, ESG disclosure, sustainable development, financial performance, value proposition, cost efficiency, competitive advantage, stakeholder engagement, Industry 4.0 technology |
Depositing User: |
Ting, Austin
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Date Deposited: |
11 Mar 2024 08:46 |
Last Modified: |
11 Mar 2024 08:46 |
URI: |
https://eprints.nottingham.ac.uk/id/eprint/74439 |
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