Production and Operation Management

The corporation might be excited to find they are utilizing the First-Mover Advantage by moving into an emerging market to set up shop (Kokemuller, n.d.). The company may even anticipate building success by becoming a recognized brand in the industry but there is risk that this can back fire and a second corporation may come in and steal that anticipated success through better innovation and even cheaper product and labor. In addition, the country that is manufacturing the product could decide to make a similar product forcing the other country out.

A firm’s operating costs can also be increased by changes in legislation which can lead them to seek cheaper alternatives elsewhere. For example labour laws will need to be thoroughly scrutinized. Increases in the minimum wage in the UK has contributed to UK firms looking to exploit cheap labour whereby in 2003 companies such as BT took the decision to shift all of their call centres to India (www.bbc.co.uk/news). Another such protection is foreign ownership laws e.g. the Australian “Broadcasting Services Act 1992” does not allow any more than 20% foreign ownership of a broadcasting firm (www.austlii.edu.au). Taxation of foreign firms is also another cost to consider.

The company also should consider other factors in choosing the location of the plant including:

Gioe Melaney is the general director of Southern Toro – a subsidiary company included in the distribution system of Toron Coporation in Galveston, Taxas.

Gerdeman(2012) acknowledges place strategy as a fundamentals in marketing mix of a product or service. Place strategy highlights how and where a company should place and market its products and consumer purchases. This component of the 4Ps is sometimes referred to as the distribution strategy.

The political factors will affect any businesses that will be trying to expand internationally, as they mainly revolve around the legislations that apply in that country. In the chance that a country prohibits a business from making more than 35% gas emissions, the business that is operating in that country will have to abide to that. Other political factors that the business will have to abide is the way that the country operates with the employment. A business cannot treat the employees of that country working for them to suit their needs, but they will have to consider how the country operates politically. Every country will have their consumer rights, environmental issues and government taxes and subsidies which will all need to be taken into account, and if the businesses do not abide then they can get heavily fined.

To deal effectively with the wide array of factors affecting the ability of a business to grow and prosper, managers need advanced processes they feel will facilitate the optimal positioning of the business in its competitive environment. Such positioning is possible with strategic management because this process improves preparedness for unexpected internal or competitive demands.

Plastic key chains are being produced in a company named Hot Shot Plastics. The plastic material is first molded and then trimmed to the required shape. The current curetimes (which is the time for plastic to cool) during the molding process affect the edge quality of the key-chains produced. The aim is to achieve statistical control of the curetimes using Xbar and R-charts

The phrase “location, location, location” is often used from the real-estate side of business. This phrase is also essential for an organization to determine where they are going to set up their operations in order to have success. When doing business in another country there are several factors that CEO’s must take into account. Predominantly culture is the major concern because there are some variables that cannot be measured; how will the locals react to us being there. Other factors such as the language difference, cost of doing business, and general political situation are all things to consider.

Surprisingly, there are many advantages and benefits in opening a company in another country. In many locations items are in high demand, but the customers cannot get them due to location. When expanding your location the possibility of getting these good and selling them will be high. Not only will there be a profit being made, but there could be jobs added to the new location and help the people there out financially as well as your own company (Joseph, 2017). Additionally, people like to see new businesses come to their town because it brings customers and customers have money that builds up their community. Also, another benefit would be a tax break if the country you are moving to offers one to a new business. Many locations are

Measuring a potential business venture has many aspects which the international manager must be aware of in order to convey the correct information back to the decision makers. Being ignorant to any of the aspects can lead to a false representation of the project, and hence an uninformed decision being passed. In order for a business to survive it must grow. For growth to be optimal, management must first be able to identify the most attractive prospective leads. The country as a whole, specifically geography, government, and financial aspects must be looked at in order to yield the best possible picture of the market a company wishes to enter. Concentration should be placed on gathering reliable facts

There is also an established literature on the effect of headquarters’ location on the firm’s ability to finance itself through debt. In general, conditions of loan are related to the distance between the borrower and the lender on one hand and the distance between the borrower and the closest competitor on the other hand.

If the government in which a company exists has a lot of restriction, the company would want to move to location with fewer regulations.

Place – Place is also very important in the terms of business because before opening the business they should consider the location properly that are they targeting the proper market according to their business. Place must be easy accessible for customers, suppliers etc.

The company has to decide between the two locations based on their virtues, availability and higher margin of profit.