Activity

Activity objective

To identify how to select the location of your new manufacturing plant in Canada.

Instructions

As a CEO, you decide to locate the new facility of your Mexican company in Canada. However, considering many factors, you need to define in which state. Explain at least seven factors.

Determining the facility location is a business-critical strategic decision. There are several factors that can establish the right location such as the competition, the cost, and the corresponding associated effects.

First, you need to know that there are no manufacturing operations that are exactly the same. For example, the needs of a specialized R&D driven medical devices company will be different from a price-sensitive mass market consumer goods operation. Likewise, an OEM electronics component supplier whose output delivery needs to be timed right away to satisfy a major automotive manufacturing plant, will have different location requirements than a manufacturer processing raw materials sourced from a mining operation in Wyoming.

• Now, answer these questions and later in a report, you must develop each of the determining factors:

1. How should I determine the location of my business?
2. What are some factors I must consider for the right location?
3. How does the location may affect my business?
4. What is the theory of industrial location about?
5. Which problems may I face when considering the facility location?

Checklist

The student answers the questions at length and correctly.