Resource and Operational Factors to Be Considered
A high-tech manufacturing firm is labelled by the capacity to secure revenues and growth from sectors that experience a constant rapid change in technology. Assume that Bit Technology Inc is an upcoming company that designs, installs laptops, networks, security surveillance systems, and servers. Consequently, BIT technology Inc qualifies as a high-tech manufacturing firm. The company plans to make global expansions. Consequently, it must consider some factors, which influence where the company can locate its international facilities. These factors are grouped into resource, or operational factors. The first operational factor is that it should consider the proximity to the targeted market (Hodgetts and Luthans, 2006, p.34). The company has to establish its operations in areas that are close to the intended market. While making such a consideration, it will be crucial for the company to crosscheck the infrastructure of the intended market. This will not only affect the transportation of goods to the market, but it will also affect the transportation of resources for manufacture. These resources include raw materials and labour. Apparently, the company should make expansions that are close to the sources of raw material and labour.
The Influence of Organizational Identity on Structure
Organizational models differ because of the different corporate goals. One of the traits that can dictate the structure for Bit Technology Inc is the company’s organizational identity. Since Bit Technology Inc is a new venture, the company should locate its international facilities with local headquarters in every geographical region of operation. This owes to the fact that Bit Technology Inc has its own organizational identity. As a result, the company depends on this identity for making profits thus; the company should be subdivided into a number of headquarters.
Legal Factors to Be Considered Before Expansion
Some legal factors must be analyzed before the country expands to a foreign territory. First, the company should consider expanding their operations to regions with favourable regulatory regimes. A favourable regulatory regime has streamlined trade tariffs, favourable laws on taxations, FDI regulations, and employment legislation (Johnson and Turner, 2003, P.71). Nations with favourable regulatory regimes provide a favourable atmosphere for conducting trade. This reduces on expenses such as strict investment regulations, insurance expenses, and tax. In fact, some regions support foreign investors by offering them with a favourable environment, access to credit and regional integration.
Hello Terry,
Your research stipulates that industries have strategic traits that influence their capacity to succeed in the market. Nonetheless, my effort on the same topic identifies one of these leading factors as proximity to the market, source of labour and source of raw materials. Your opinion on the requirement of an integrated system is particularly stunning. In fact, this will help Bit Tecchnology in reducing their operational costs.
Some companies failed to adhere to some of the regulations you have mentioned. A good example is the Coca-Cola Company. This is evident in the 1906 court case involving the coca-cola company, the forty barrels, and the United States government.
Hello Pagan,
You have done an excellent task on the operational and resource factors that will influence Bit Technology Inc’s decision. Your argument on quasi-manufacturing services is particularly outstanding. Your research identifies these operational and resource factors as capacity and facility layouts, and quasi-manufacturing services. On other hand, I was able to identify proximity to labour, the market, and raw materials as some the operational and resource factors to influence Bit Technology Inc’s decision.
Some companies failed to adhere to some of the regulations you have mentioned. A good example is the Coca-Cola Company. This is evident in the 1906 court case involving the coca-cola company, the forty barrels, and the United States government.
References
Bitt.ca. (2010). About Bit Technology Inc. Web.
Hodgetts, R. M., Luthans, F. (2006). International management: Culture, strategy, and behaviour. Boston: McGraw-Hill/Irwin.
Johnson, D. & Turner, C. (2003). International business: Themes and issues in the modern global economy. London: Routledge.