Universal Plastic : An Asian Location

1596 Words7 Pages
Universal Stainless will potentially face some internal and external challenges as it begins the researching an Asian location to provide stainless steel products to its global customers. These challenges include determining an Asian location, deciding to build/buy/partner, internal management, external management, political, economics, leadership, and information services. Selecting the Asian location requires understanding the local availability of raw materials, plentiful energy supply, telecommunications infrastructure, available land, transportation infrastructure, trained workforce, good government, stable politics, low-cost labor, non-represented workforce, low-cost entry, and reasonable medium-term sustained cost. Based on an…show more content…
China is becoming the world 's industrial factory, making finished products including clothes, electronics, foods, and steel (Zheng, Sun, Qi, & Kahn, 2014). Selecting a location for a steel manufacturing plant requires balancing the attributes of transportation for raw materials, finished goods, international seaports, and employees. Additionally, because steel production requires large amounts of energy, the location requires a powerful power generation facility and distribution platform. Finally, the factory requires a telecommunication infrastructure to support business communication functions. According to Zheng, Sun, Qi, & Kahn, (2014), "China 's coastal cities in the Eastern Region provide excellent access to the global market and are the most attractive location for private manufacturing firms" (p. 711). With China 's growth, a significant issue in this region is a labor scarcity, which is increasing the cost of labor. Inland cities are currently attractive for manufacturers because of labor cost and energy availability (Zheng, Sun, Qi, & Kahn, 2014). For example, inland cities possess an advantage to other regions because of the availability and price of electric power (Zheng, Sun, Qi, & Kahn, 2014). Additionally, local inland governments are providing incentives to offset some of the cost infrastructure issues for companies building factories. Although,
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