Introduction:
Company HR Vice President for café development, Person OM, has the job to select the ideal country, region and city for expansion of company HR and establish its new site. Though the job seems easy as it is said, it involves lot of front and back end work. Person OM has to do lot of research to choose the country and the city and has to negotitate with the local dealers to fix a reasonable cost for setting up the new plant and he stays with the plant for sales up to one year.
Person OM is currently engaged in global expansion in country E, LA and A and has to look at the polititical risk, currency and social norms and proper fitting of the brand in the particular region. His research consists of extensive checklist such as demographics, market, trend analysis, transportation, restaurants, night clubs, political risks, real estate market and HR comparable market analysis.
The site location has been focused on city centeres like city M and B and to find local franchise partner in both location. The company has made decision for 10-15 year of commitment in its operation in the selected location and it employs tools like location cost-volume analysis. It helps to make decision whether to purchase or reconstruct an existing facility. The data obtained are given below.
Factor | European city under construction | Importance of this factor at this time | |||
A | B | C | D | ||
A. Demographcis | 70 | 70 | 60 | 90 | 20 |
B. Visitor market | 80 | 60 | 90 | 75 | 20 |
C. Transportation | 100 | 50 | 75 | 90 | 20 |
D. Restaurants/night clubs | 80 | 90 | 65 | 65 | 10 |
E. Low political risk | 90 | 60 | 50 | 70 | 10 |
F. Real estate market | 65 | 75 | 85 | 70 | 10 |
G. Comparable market analysis | 70 | 60 | 65 | 80 | 10 |
To determine: Apart from the factors given in checklist, check other factors such as population (A1), hotels (B2), or restaurants/night clubs (D) and provide three sub-categories which has to be evaluated.
Want to see the full answer?
Check out a sample textbook solutionChapter 8 Solutions
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
- One of the main reasons of the organization’s problems is the poor location of the organization, so you decided to relocate in another place. Explain the important criteria in your decision and the alternatives you have, and the basis on which you took your decision.arrow_forward3. A company desires to locate a new facility. Based on preliminary analysis, the choice has been reduced to four locations: A, B, C, and D. These four locations were rated on a scale from 1 worst to 10 best on each of four criteria. Each criterion was also weighted to indicate its importance (i.e., the higher the weight, the more important). The list of ratings and weights follows. Location Weight A Factor Wages Labor climate B 0.40 7 3 5 0.35 9. Local regulation Weather 0.15 4 3 2 0.10 2 8 a- What would be the best location b- If the wights of weather and regulation be divided that the weather would be double of the regulations, what would be the best location LOarrow_forward: While doing market research, an entrepreneur asks the following questions: Will it need renovations? Is it convenient for customers? How close is it to suppliers? Are there potential employees in the area? What is she most likely trying to determine? a) If a target market is available b) How to price the products c) What type of business to form d) Whether a location is suitablearrow_forward
- A company desires to locate a new facility. Based on preliminary analysis, thechoice has been reduced to four locations: A, B, C, and D. These four locationswere rated on a scale from 1 worst to 10 best on each of four criteria. Eachcriterion was also weighted to indicate its importance (i.e., the higher theweight, the more important). The list of ratings and weights follows THE TABLE ATTACHED b- If the wights of weather and regulation be divided that the weatherwould be double of the regulations, what would be the best location. Please can you give me an answer with explanation.arrow_forwardIdentify the factors when choosing a business location from the statements below.arrow_forwardWhy would a U.S. manufacturing firm select a foreign site for one of its plants? a. The site is closer to the product market area b. Labor costs are more favorable c. The foreign country's tax environment is more attractive d. All of these factors could influence a firm's decision to manufacture overseas.arrow_forward
- 1. Do a comparative analysis of at least two of your competitors in two different locations. 2. Based on your observations. Answer the questions below: • Which of two competitors you have are doing better? Why? • Which of the two has more attractive physical spots? Why? • What locations do you think contains more customer profile? 3. Out of the two chosen locations by your competitors, which one would be the best for your business venture?arrow_forwardOnce Committed to a location for your business what is hard to change? A) Your decision on that location B) What you manufacture C) What you sell D) How the company is organized E) What markets you will servicearrow_forwardA company that is developing a strategy that entails obtaining location advantages for several of its different inputs A) would have each value chain activity replicated in each of its host country locations. B) would be pursuing a low cost strategy with economies of scale. C) would concentrate each value chain activity in the country in which can be performed most efficiently or effectively. D) would concentrate most of its value chain activities in its home country, where it is most familiar with the location. E) would implement a multi-domestic or multinational strategy.arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.