Whelan Pharmacy Essay

1777 Words Feb 25th, 2012 8 Pages
Executive Summary
In today’s business world, production cost was an increasing concern for companies working to stay competitive in the global marketplace. The top management must search for a global solution to drive down costs and reduce difficult activities associate with inventory management and production management. Global sourcing aimed to exploit global efficiencies in the delivery of services and goods across geopolitical boundaries, including low cost skilled labor, low cost raw materials, tax benefits, and price breaks. Whelan Pharmaceutical was the best example to illustrate how the company chose the best manufacturing site for global sourcing from different perspectives.
Whelan was an American multinational pharmaceutical
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However, differences in their recommendations resulted from differences in assumptions and functional backgrounds. Without an effective and interactive approach to help Whelan Pharmaceutical achieve its goal, the challenge would continue to escalate.
An integrated approach was needed to effectively combine tax factors and nontax factors that could assist the company to choose the best site that could perform as a strong competitive advantage of the supply chain.

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.
Based on the summary and comparison of each potential site (Table 1), Whelan Pharmaceutical was recommended to choose continental European as a manufacturing location because of highly skilled workforce and pro-business environment. Continental European would become the strategic site for Whelan Pharmaceutical because the manufacturing operations are knowledge, capital and skills intensive.
The reasons for choosing continental European as a global location for Whelan Pharmaceutical as follows: * Providing a combination of experience,
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