Factors that the company should consider during its analysis to locate a country to startup an automobile factory
When selecting a country for the construction of an automobile plant, the company managers should consider the following factors when carrying out analysis. An automobile factory should be in a country where labor is affordable. Managers should avoid importing labor because it makes the cost of operation high. Locally acquired labor is best since personal issues can be addressed easily (Gaiski, 2009).
For example, workers living in their homes eliminate housing problems, and living in the locality of the company cuts transport costs. Another factor is proximity to the source of raw materials required by the company. Raw materials constitute the largest ratio of production cost. Therefore, it is a prerequisite for the factory to ensure that it locates its plant as close to the source of raw materials as possible. Firms should acquire raw materials in the right quantity, quality, and at the right time. Economic survey of the location is another factor that should be put into consideration (Gaiski, 2009).
The best place to locate a mobile auto plant is the one where the costs of obtaining labor, property, and materials to produce finished products are quite low. Safety requirements should also be looked at keenly. This is because the safety of employees and the company’s assets is vital; hence safety is a key factor for progress in any company. An automobile Company should be set in place with adequate security since it deals with expensive accessories (Dubrin, 2011).
Product-by-value analysis
The product-by-value analysis is the listing of a company’s product in an ascending or descending order of their individual revenue contribution to the firm. It also involves ranking to determine the annual revenue contribution of individual products to the company’s total annual revenue. (Morasch, Siegle, and Pickl, 2011). Product-by -value analysis of firms manufacturing more than one product helps managers know how individual products perform (Gaiski, 2009).
This helps in understanding key areas that need more funding as well as in understanding which products require additional resources to improve their performance in the market. This process is essential for companies that produce multiple products because it enables companies to analyze yields in each product separately.
How can a grocery store make better use of e-commerce?
Grocery stores should use E-commerce technology to make their transactions easy and thus attract more customers due to the convenience created by E-business. Online shopping eliminates most of the steps involved in shopping in the traditional way whereby customers need to make a physical appearance to the market. Grocery stores can benefit from various methods of payment provided by E-business.
This increases security as customers pay for their goods through electronic means, for instance, the use of credit cards in paying bills, as argued by Plenert (Plenert, 2002). E-commerce operation management approach to traditional operation management can concern several aspects, one of them being startup costs. Startup costs are relatively low because E-commerce operation requires little capital to develop and run the business. The skills required in operating the businesses are minimal; hence individuals can operate such businesses from their homes, unlike in the traditional way, which requires trained personnel, location renting, inventory, and handling of goods, which results in the high cost (Plenert, 2002).
In an E-commerce business, the owner can run it without employing other people. It happens because most of the E-business operations can be done by one person, unlike offline businesses, where sales relations managers, accountants, and other staff have to be hired. CPM and PERT are project management techniques. These are applied in the management of complex projects and establishing planning for huge industries. The framework involves the following steps:
- We are defining the project and tasks to be carried out in operation.
- Developing the relationships between the activities to be undertaken and the order in which activities should follow.
- Drawing a network connecting the activities. Dummy connections should be used to avoid repeating numbers.
- Assigning cost or time estimates for each activity.
- Determining the longest path.
- Controlling and monitoring of the project should be guided by that network.
References
Dubrin, A. J. (2011). Essentials of Management. New York: Cengage Learning.
Gaiski, S. N. (2009). MAKING IT RIGHT: Why Your Car Payments are Lasting Longer Than Your FACTORY. New York: Zestar Corporation.
Morasch, B. H. Siegle, M., and Pickl, S. (2011). Operations Research Proceedings 2010: Selected Papers of the Annual. London: Springer.
Plenert, G. J. (2002). International operations management. Boston: Copenhagen Business School Press DK.