Wednesday, August 7, 2019

International Biz Management 4 questions Essay Example | Topics and Well Written Essays - 3000 words

International Biz Management 4 questions - Essay Example The analysis of benefits and costs of moving the plant from US to Mexico are detailed below: Strategic Implications of Moving the Plant There can be a number of different reasons behind a company’s thought to move its operation, either completely or partly, to another country. As Plenert (2002) stated, out of various reasons for a company to relocate its operation, advantages of labor cost and total costs are the major drives for US companies to take wise decisions regarding relocations (p. 378). Moving to another country is strategically important as it helps a company gains more competitive advantages, build stronger brand worldwide etc. Benefits of labor cost and total costs are more evident in cases where companies decide to move from a developed country to a developing or under-developed country. Almost all major Multinationals have shown their place in China due to the availability of cheap labor that ensures increased productivity, greater accuracy and more effectivenes s in business operation. Relocating the plant from US to Mexico is not only driven by labor or total cost factor. ... und 50 % of Mexico’s total manufacturing assets are controlled by large Multinationals, mainly in border zones, making these border zones main cities of the country (Hamnett, 1999, p. 261). Moving company’s plant to Mexico thus helps the company gain greater advantages of labor and total cost, greater efficiency and increased productivity. But, if the company doesn’t decide to move, it may not be able to gain greater competitive advantages and ensuring the efficiency in its operation. Social Responsibility of the business in Mexico Social responsibility is perhaps one of the most important buzzwords of today’s business world. No matter whether the business stays in home or goes global, social responsibility is an extremely important factor that determines how good the business is and how far it can be successful. A business should never be a profit-only oriented business, but rather, it must seek to align its values, visions and strategies with needs, view s and perceptions of its various stakeholders, including employees, customers, government and wider social interests (Mallin, 2009, p. 1) When the company plans to move its plant from US to Mexico, it is highly important that its management must consider corporate social responsibility. An extensive market research may be required to recognize the tastes, specific requirements and interests of customers that it targets. As Kotler and Lee (2005) noted, social responsibility is a commitment to improve community well-being through discretionary business practices and contributions of business practices (p. 3). The proposed manufacturing plant to be established in Mexico and its operational activities should be able to add values to the community well-being. Business activities that are mandated by law or are

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