After analyzing relative production, distribution, and tariff costs, AllStar decides to build a plant in Peru where costs are significantly lower than in the home U.S. plant (e.g., 20% lower to produce a small economy tube of toothpaste). Previously 200 million units for Latin America had been produced at the manufacturing facility in the U.S. (home plant). However, after the Peru plant is completed, AllStar begins supplying all of Latin America from the local plant. As such, the 200 million units no longer need to be produced at the U.S. plant. As a result of moving Latin America-bound production overseas, AllStar has too much excess capacity in the U.S., and decides to close a manufacturing facility in U.S. While you now employee hundreds of manufacturing workers in Peru, you have laid off roughly the same amount in U.S. • What are AllStar’s responsibilities in the U.S. when shifting production overseas? • How should AllStar manage its community relations activities in Peru? • What might be some “unintended consequences” of moving production overseas?
• What are AllStar’s responsibilities in the U.S. when shifting production overseas?
AllStar' responsibilities in the U.S. when shifting production overseas include:
• How should AllStar manage its community relations activities in Peru?
• What might be some “unintended consequences” of moving production overseas?
After analyzing relative production, distribution, and tariff costs, AllStar decides to build a plant in Peru...
Should World Kitchen outsource Pyrex production and
close the Charleroi plant? If so, how many suppliers should the
company employ and where should they be located?
We were unable to transcribe this imagedishwas resulted from a process that pressed together yers of thin, strengthened opaque glass. products if they were moved overseas and simply source the lower-cost private-label versions directly sales and marketing functions. THE MARKET Givsn its extensive experience with outsourcing the Giobal Sourcing Department at World Kitchen had...
Read about Cokes strategy in Africa in the article below and discuss the ethics of selling soft drinks to very poor people. Is this an issue that a company like Coke should consider? Africa: Coke's Last Frontier Sales are flat in developed countries. For Coke to keep growing, Africa is it By Duane Stanford Piles of trash are burning outside the Mamakamau Shop in Uthiru, a suburb of Nairobi, Kenya. Sewage trickles by in an open trench. Across the street,...