Details: Consider the following scenario and respond to the questions that follow. A new firm, Bit Technology Inc., is deciding where to locate its facilities internationally.
1. If this firm is a high-tech manufacturing firm, what resource and operational factors should be considered in this decision?
2. How might the organization's identity influence its structure?
3. Explain the legal factors that must be considered when a company decides to locate its operations in a foreign country.
1. If this firm is a high-tech manufacturing firm, what resource and operational factors should be considered in this decision?
Resource and operational factors:
They need to consider the labor supply. They need to make sure that the location in which they establish their complany will have a labor pool that can supply them with a qualified, educated and technologically literate job force. Just being able to hire cheap labor is not enough, they must be technologically qualified as well.
The location they choose should be easily accessible by air, ground and perhaps sea depending on how parts are shipped to them. If they are a company that builds or assembles a product they will be shipping parts in and the finished product out. Therefore being close to the entry and exit point for their parts and end product will cut down on transportation/shipping costs. This is especially true if much or most of their end products are destined for export. If their product is consumed locally then a central location in the nation might be desirable.