Business Finance Homework Help

This case study focuses on the factors that influence production location choice in today’s global economy. It concerns the world’s largest automotive glass producer as it expands from China into the U.S. The key decision being addresses is whether to locate the production facility for the U.S. market in Ohio or in Tianjin, China. It is important because around the world, markets are growing and supply chain management decisions are becoming more complex.

Working in teams, provide one response per team to each of the following questions.

Address the following questions (in this case study, there is no need to use an article to support your analyses):

1. Using the data provided in Exhibit 16 (showing cost per windshield of $40.60 in Tianjin and $60.44 in Ohio), compare the cost breakdown of each alternative location, using tabular and/or graphical approaches.
2. Discuss the factors represent the biggest “gaps” in the cost comparison.
3. Make projections of how the cost comparison will evolve over the next 2 years, based on other information provided in the case.
4. What “hidden” costs (those not addressed above) factor into the decision – do an analysis of how these hidden costs compare for the two alternative locations.

Case Study #2: Fuyao Glass America: Sourcing Decision, by Willy Shih Harvard Business School, Case 9-618-007
August 2018

This case study focuses on the factors that influence production location choice in today’s global economy. It concerns the world’s largest automotive glass producer as it expands from China into the U.S. The key decision being addresses is whether to locate the production facility for the U.S. market in Ohio or in Tianjin, China. It is important because around the world, markets are growing and supply chain management decisions are becoming more complex.

Working in teams, provide one response per team to each of the following questions.

Address the following questions (in this case study, there is no need to use an article to support your analyses):

1. Using the data provided in Exhibit 16 (showing cost per windshield of $40.60 in Tianjin and $60.44 in Ohio), compare the cost breakdown of each alternative location, using tabular and/or graphical approaches.
2. Discuss the factors represent the biggest “gaps” in the cost comparison.
3. Make projections of how the cost comparison will evolve over the next 2 years, based on other information provided in the case.
4. What “hidden” costs (those not addressed above) factor into the decision – do an analysis of how these hidden costs compare for the two alternative locations.
5. What opportunities would you recommend that management pursue in closing the gaps identified above?
6. Make a final decision regarding the location choice and briefly summarize your rationale.

Your team should submit one Word file, with a title page containing your names and the case study name. Include all quantitative analyses in this file, in a format suitable for printing. If your analyses are done in Excel, do not attach the Excel file – make the report self-contained with all analyses and supporting information. 

1. What opportunities would you recommend that management pursue in closing the gaps identified above?
2. Make a final decision regarding the location choice and briefly summarize your rationale.