Building A New Offshore Manufacturing Facility For Building The New Xemovation Product Line

The areas with the most factories are Greater China, with 247; India, with 297 and Southeast Asia, with 382 factories. The actual number of factories utilized is 1,340. Fabrics are subjected to fabric mill selection and regional testing

With bringing your factories to foreign countries you get cheaper labor land and can avoid many taxes.

The Recommendation proposed here presented a global location selection reference tool for identifying key competences for potential sites and suggested how these competences can be used effectively and strategically in company’s supply chain. Additionally, the recommendation was addressed based on the assumption of locating all manufacturing stages at one site for worldwide distribution.

Private and commercial are the two purposes of the vehicle production in the industry (Ibisworld, 2013). In order to grow the revenue and profits, a new small-car production plant was build by Holden in Adelaide in 2010 (Holden annual report, 2012). Holden paid attention to become a global player depends on the GM plant in Thailand. This plant became a base to help Holden expand its reputation in Asia-Pacific region and reduce the production costs for the production (Ibisworld 2013).

I will first talk about the purpose of having operations done in another country. American companies can decide to move their companies overseas for a few reasons. One reason is that they can hire workers at low wages, for example, in China they can pay as little as 30 cents and hour whereas here they would have to pay employees minimum wage.1 Another reason is because the company would not have to pay employee benefits, such as vacation time sick days, and health insurance.1 A third reason would be that they would not have to follow safety and environmental regulations.1 The last reason would be that they would not have to pay foreign taxes

If our company can earn sufficient fund, it is proposed to increase production in Asia-Pacific (AP) region. It is because the production cost in AP is lower than in North America (NA).

Also most of the raw materials for making the RTD and beverage products for the company were exported from other countries which create significant overhead with higher operating costs(United States Department of State,2016). Consumer market for RTD and beverage products are less and business cannot grow after reach certain level of peak stage. So company was forced to think about new business opportunities and starting factories in Saudi Arabia or

According to the case we know that labor costs in china may have a big increase in the next 10 years, from 40% totally to 10% annual increase to even 40% annual increase.

Clear examples of this would be Intel assembly plants in Penang, Malaysia and in Manila, Philippines. Design requires high level scientific, technical and engineering personal, usually in Japanese and American locations, as the chips are light transportation would not affect the location was these industries a great deal. Another key economical factor was the economy of the region, areas such as United States, Japan and Western Europe are key examples of this. The political and financial systems allowed access to the financial capital needed for the development of semiconductor manufacturing.

Another alternative should be to create a plant in Europe so now they don’t have top ay all the taxes they have to pay so they can export their products, in that way they will be able to give better prices to their clients, and they will supposed to have a better service and more quality because they where the pioneers in those products.

6. The company has three main problems: the first problem is that they may unable to complete 200,000 IPhone 4 units in any of the three months they have been working on the contract. The second problem is they cannot hire more workers. The third problem is the company have problem with the Samsung flash memory installation. We have some suggestions for the company to solve these problems. Firstly, Danshui Company should improve their salary policy. We recommend company should motivate workers to produce more efficiently, for instance, they can set a basic salary for workers and offer them bonus if workers complete target. Secondly, the company should provide professional training for labors. So they can work more efficiently. After workers becoming more professional, the company cannot only use less labor hours, but also save more materials. A third suggestion is that Danshui Company should also improve the quality of production supervision. They should hire a more professional supervisor who is familiar with the production process and is able to build a good relationship with labors, so they can work more efficiently and the company can even save more money on materials.

Moreover, even though producing in Vietnam would suppose a strong saving in cost in the labor-intensive processes, the risk of mold duplications and counterfeits is high. The imitation of the company’s products would eliminate the differentiation that allows them to charge a much higher price than the local manufacturers (15$ compared to 3$). Also, the company lacks of experience establishing a wholly owned subsidiary in a new country.

This amazing economic transformation of South Korea has made present-day developing and under developed nations in the

The third factors that the producer must consider to come in the foreign country is the technological of the country. The producer must use the suitable technological for the country. It is because if the producer use the low technical from the country , the country will decrease their believable to the producer because they look their technological is more better. But , if the technological that producer use is very high the country also don’t know the technology and they also cannot be acceptable. Besides that, the technological that the producer use must have been easy to the labor of the country to manage. If the labor don’t know how to manage it, the process of production may take along time. That means, it will increases the cost of labor. So it will failed the goal of the company to save the labor costs.

In comparison with the number in developed countries, €9 per hour in the UK for example, no wonder why big multinational companies all over the world have been trying to outsource to Vietnam. There are many factories along the country which are manufacturing final products for world top multinational companies. Nike, Adidas, Panasonic, Toyota, etc., all place their factories in Vietnam. In fact, when one goes shopping in Europe, it is no surprised to see a product of a famous brand with the “Made in Vietnam” label printed on it . Moreover, according to some latest research, Vietnam has a young population. It can lead to a more effective working force, compared to countries which have an old population, such as Finland and Japan. In the last decades, the literacy rate of Vietnam has been increasing steadily, from 88% in 1989, 90% in 1999 to 93,5% in 2009. More people get a bachelor’s degree nowadays, which leads to the improvement in the worker’s skill. Offering not only a strong flow but an efficient working force, Vietnam has been attracting more investors every year.