Teleleader Business Case Study

Problem Identification: -Should Teleleader build a new manufacturing botany in Malaysia or Mexico? -Will the factory provide for the 10% lessening in embody of the pager that can be transferred to a 10% price reduction to maintain their competitive price and notice/maintain their pager market apportion? -Is Malaysia really a live nest egg? -What about risks winding with inflation and immaterial exchange pass judgment? guess: Teleleader should build their second manufacturing whole shebang in Malaysia creating a cost savings greater than would be created by constructing an additional rapidness in Mexico. More specifically the facility should be regain in the Penang/Selangor area. Analysis of Hypothesis -Is there a significant cost savings associated with a Malaysian based manufacturing plant? Opening a factory in Malaysia offers significant cost savings in many different areas. 1. Corporate evaluate rates 7% savings over Mexicos 2. Teleleader will seat a tax v acation period of 3-5 years root forthwith upon opening 3. collect to agreements made with the Malaysian establishment Teleleader will enjoy cost savings of 9-14% on European exports, this converts into a 3-8% general cost savings. 4. Direct labor be are on average 34% less than those in Mexico. What are the advantages of mess in Malaysia?

Global insurance coverage: turn up the second manufacturing plant in Malaysia offers a greater coverage of the global market it serves. European duty savings: Due to the special tax treaty that Malaysia negotiated with the atomic number 63 rather than pay the 15%-20% that Teleleader is currently paying it would be cut down to 6%. There is a turn up to this process; the goods could n! ot be shipped back to the US to be inspected for quality control. A separate quality control share would need to be established somewhere within the EEC. This is postulate to avoid the higher tariffs charged for exporting from the... If you want to stay up a full essay, order it on our website: OrderEssay.net

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