Reference no: EM133294423
You are one of the founders of ABC, an upcoming virtual reality (VR) headset manufacturing company located in Miami. You have been given $50,000,000 by a venture capital firm, this will allow you to start the operations, and build a factory for your company in one of the following two countries:
1) Japan
- In Japan, you have access to high-quality parts, but they are pricy making it difficult to compete based on price alone.
- The quality of the manufacturing processes is the highest, but labor is 5x more expensive than in Mexico
2) Mexico
- High-quality parts can be obtained at low numbers and high prices. However, plenty of medium-quality parts at low prices can be found with the possibility of importing cheaper parts at an even lower.
- The manufacturing process is acceptable, and labor is inexpensive. Based on this limited information, use the information in the chapters covered in the class to explain:
a) Your decision and approach to choosing one of the two countries. Japan
b) Make sure to indicate how your strategy gets affected or shaped by your country's selection.
c) What type of ownership will your manufacturing plant have? Are you interested in joining forces with a local company?
Make sure to talk about most of the following topics:
1- Multinational Management Resources: A strategic approach (blurring industry boundaries, flexibility better than size, finding a niche, hyper-competition, emphasis on innovation and learning)
2- Direct Investment and Collaborative Strategies
What type of ownership for your operations? Wholly owned, joint venture, equity alliance?
3- Emerging Markets, Developing Economies, and Advanced Economies
Japan vs Mexico why would you invest in each? Advanced economy vs Emerging Market? Trade condition differences. Market characteristic differences.
4- Small Business and International Entrepreneurship
Being a small business, with great connections what would your advantages be? how could the company benefit from being new and well-funded?
5- Developing and Marketing Products
What are your company's takes on adaptation vs standardization, adapting or not adapting your product, name, or brand to local preferences?
6- Global Sourcing
What would you think are the benefits of using local parts compared to importing them?
Expensive/cheap, difficult to ensure on-time vs always on time, high-end parts vs low-end parts.
7- International Operations Management
Product- and country-related location decisions, sourcing
8- The Strategy of IB
Global Integration vs Local Responsiveness, Integration-Responsiveness Grid.