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The survival of a global company is mostly based on the planning and strategizing phase of executing a new business venture. The production strategy phase is where most of the leg work is put in to determine the product demand, the location, and the execution strategy that can be beneficial or challenging depending on the work you put in prior to execution. The first step to building a strategy is capacity planning, you must carefully estimate what the demand for the product is going to be. If the company estimate too little they may have to stretch the product to meet the demand. If the company estimate too much it may end up as a loss. Location matters! strategically placing the company in an environment where it's beneficial to cost and labor availability would set the company for success. A couple of challenges a company could face if they are not aware of the area could be traffic issues or supply issues. Having access to major transportation systems would ultimately set the company up for success. Another issue that a global company may face is maximizing their efficiency by the way layout their space. Opening up in China.
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