International Business Management Research Paper - 1

International production line Management - Research Paper ExampleCost of Moving The different aras where the assembly name has to ante up monetary value of moving are as follows Fittings, fixtures and land for the brisk plant Salaries of the in the raw workers including the overheads and the training cost Social costs Transportation cost of exporting or shipping the finished products Power expending and utilities Cost of installing machines Shareholders Affected The current economic crisis whitethorn affect the companys magnate to get business in the market. This might be the reason of declining profits. The company must conduct an national analysis to find the root cause of their problem areas. After evaluating, the responsibility can be situated on a certain party. The benefit would be, that the labor cost, and production cost would be lower in Mexico and the maintenance cost would be lesser in US, so the shareholders profit can be guaranteed (Elliott, 2007, p. 13-14). p urpose b) The strategic implications of moving and not moving are explained below Moving There are two advantages as well as disadvantages of moving the plant. Moving the assembly plant from the old location to a new business office would help the company to start their business with cheap labor force and a new community to target to. The company would be adequate to(p) to generate more revenue. The companys machineries are old and outdated which results in declining profits. So utilizing the low transportation cost, and tax free benefits in Mexico, the assembly plant can be moved. The disadvantage would be that the company would not be able to utilize its old site it has to adjust according to the new and advanced equipments that will be utilize in the new plant. Along with that the training cost would be high as the employees of a totally different culture would have to be trained on new equipments. Not Moving ratified implications may arise while moving to Mexico. The emplo yees loyalty would be questioned and the originality of the company would be lost. The major hack of the company is to maintain its profitability and increase the long-term value. This could be even done by inputting new facilities into the old machineries to compete with the other players, hard-work, continuous improvement and by means of innovation. By keeping the assembly plant where it is the company would not only be profitable but also be loyal to the place (Deresky, 2006, p. 64-66). Answer c) If the management of the company is able to understand the obligations of communicating with the political and the social leaders, then their deep adopted obligation is right. It is important to persuade the leaders that the community as a whole and the employees are the priority and not the profits. The company must look for options for supporting their moving decisions. They may propose the lively plant to look for some new owner or explore the opportunities of owning the employees . In case of the new assembly plant in Mexico, the responsibility lies on the host country and the facilitators of the organization. It is important to have a good public relation in order to consider the environmental and social issues. The ethical implications may also have an impact on moving the assembly plant to a different location, through reduction of labor cost. The focus should also be on the social and