Finding a Location for Electronics Component Manufacturing in Asia
Autor: hanimzainal • April 30, 2015 • Case Study • 575 Words (3 Pages) • 6,716 Views
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finding a location for electronics component manufacturing in asia
- What advantages and disadvantages does each potential location offer?
Country | Advantage(s) | Disadvantage(s) |
Singapore |
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Malaysia |
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Hong Kong |
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- What other relevant factors that are not mentioned in the case study might play a role in this decision?
The other factors that might play a role in the decision making are:
- Education of the workforce (both current workforce and future generations). This includes labor talent and attitudes towards the work.
- Political stability of each country
- Exchange rates and currency risk
- Why is transportation infrastructure so important in this decision?
ACM rely on the logistics in order to move in the raw materials and move out the final product to customer. The transportation cost the incurred will definitely give bigger impact on the decision of relocating to new location.
- This is a long-term strategic decision; what factors might change in the next ten to twenty years? How will this influence the decision?
Since the plant will “pay for itself” over a long period of time, the decision relevant to costs must be examined not only at their current level but also how this is expected to develop over the years.
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