Problem:
The pharmaceutical industry went through many changes in the 1990s and the early 21st century. NAFTA made a significant impact on Canadian manufacturing. The trade barriers were removed, and the company began to question whether it was cost effective to keep manufacturing products in Canada with higher labor costs and much higher taxes. In addition, the 245 acres of land that the facility was located was near a prime residential area and within a mile of Lake Ontario just outside of Toronto. The land alone was worth over $US 7,000,000.
What I am looking to analyze...
Analyze whether or not to continue manufacturing in Canada or move it back to the U.S. This requires research into transportation cost estimates from Colorado to Toronto. It also requires analyzing the impact on company image by shutting down a facility in Canada.
I want to draft a recommendation to management including estimated costs and benefits of shutting down or keeping open the Canadian facility and taht support my recommendation with a 12-month based action plan included.