Chapter 9 Essay examples

1588 Words Dec 4th, 2015 7 Pages
chapter 9. Evaluating new production and sourcing locations

9.1

Labor costs in manufacturing industries in different countries Norway
Belgium
Switzerland
West. Germany
Denmark
Finland
France
Austria
Luxemburg
Sweden
Netherlands
Ireland
Italy
USA
Japan
UK
Spain
East Germany
Canada
Greece
Slovenia

43.64
38.59
37.14
36.05
35.08
33.76
33.31
33.20
33.09
32.88
32.75
29.62
27.40
22.95
22.86
22.21
21.87
21.11
21.01
16.44
13.18

South Korea
Malta
Portugal
Czech Rep.
Croatia
Slovakia
Estonia
Hungary
Poland
Lithuania
Latvia
Turkey
Russia
Romania
Belarus
Bulgaria
China
Ukraine
Modavia
Georgia
Phillippines

11.49
10.27
10.03
8.86
7.89
7.80
7.30
6.94
6.04
5.45
5.25
…show more content…
Grünig/D. Morschett

9. Evaluating new production and sourcing locations

9.4

Motives for relocating production abroad
77%

Labor costs

29%

Proximity to key customers

28%

Market-seeking

16%

Proximity to other relocated production

15%

Transport/logistics costs

12%
8%
2%

Taxes/levies/subsidies
Lack of skilled employees
Access to new knowledge/technology/clusters

% = Percentage of relocating companies
(adapted from Fraunhofer Institut, 2009)
© 2012 R. Grünig/D. Morschett

9. Evaluating new production and sourcing locations

9.5

Reasons for foreign divestments
68%
43%

Quality

Flexibility/service levels for delivery

33%

Labor cost

32%

Transport/logistics costs

20%
19%
5%
2%

Coordination effort
Availability/fluctuation of skilled employees
Loss of know-how/copies/piracy
Proximity to R&D

% = Percentage of reversing companies
(adapted from Fraunhofer Institut, 2009)
© 2012 R. Grünig/D. Morschett

9. Evaluating new production and sourcing locations

9.6

Process for evaluating new production and sourcing locations 1. Producing an initial list of potential country locations

2. Eliminating the less attractive countries

3. Selecting the most attractive countries

© 2012 R. Grünig/D. Morschett

9. Evaluating new production and sourcing locations

9.7

Evaluation of Romania in the World Competitiveness Report
Key

Related Documents