Words 500 to 700

So have you settled in to your office?” he asks.

“I have,” you say. “I think I have everything I need. What can you tell me about my first assignment?”

“I’m glad you’re eager to get started with work,” he says. “The board is considering several proposals in response to our situation, and we need you to create a list of the legal, cultural, financial, and economic factors that AutoEdge needs to consider about the location of our manufacturing operations. Most members of the board aren’t familiar with this aspect of the business, so we want you to briefly describe the factors you list, rank the factors, and explain your reasoning. Be specific when you explain so the board understands your rationale.”

“Do I need to conduct the research, as well?” you ask.

“We just need you to list and describe the factors at this time,” he explains. “You don’t need to actually do the research.”

“I can do that,” you say. “When do you need it?”

“Send it to me by the end of this week so I can review it before the rest of the board gets copied,” he says.

“No problem,” you say. “Can you give me an idea about how detailed you want me to be?”

“I don’t want it more than 800 words,” he says. “Between 600 and 800 words, I’d say.”

“OK, I understand” you say. “Thanks for your call.”

ANSWER

                 NAME OF STUDENT:

                         COURSE CODE:

                        COURSE TITLE:

            INSTRUCTORS NAME:

 

FACOTRS CONSIDERED IN LOCATION OF AUTO EDGE

The Auto edge legal factors in the environment can greatly affect the different

opportunities and threats to be faced by the industry and the companies operating within legal

factors pertains on the different actions and strategies being implemented by the countries, which

help to ease the entry of foreign investment in their specific countries. This include

implementations of policies regarding tax incentives, worker-training support packages, good

transportation facilities and telecommunication facilities. It is also important to focus on the

different financial incentives to be offered towards the foreign investors,

On the other hand, it is also important to consider that different countries or governments

have their different policies and standards

Above all, political stability or risk   It will be highly risk for a company to choose a

politically unstable  because of the conflicts and chaos that it has to face with the government

officials, together with the rage that it will have to face from the citizens of that country, at the

same time, consider the overall impact of that choice towards the overall image of the company,

worldwide.

The cultural factors the Auto edge needs to consider is the Power distance characterizes the

extent to which people consider it natural that power, status, and privileges are distributed

unequally among individuals or that this distribution has no high significance in their lives. And

also Individualism vs. collectivism characterizes people’s esteem of individual activities and

successes . the importance of their belonging to a social group. In an individualist culture people

are supposed to take care only of themselves and their immediate families, and remain

emotionally independent from the group. Masculinity vs. femininity is better expressed as

confrontation and quantity orientation vs. compromise and quality orientation. In masculine

cultures importance is placed on assertiveness, competitiveness, and materialism in the form of

earnings and advancement also Uncertainty avoidance characterizes people’s attitude toward

ambiguous or unknown situations. Innovation usually involves a lot of uncertainty; it is by

consequence easier in weak uncertainty avoiding cultures. This will help in the location of its

manufacturing operation.

The financial factors for Auto edge to consider in its location are the income generated by

the business and its sources. And  also Cost of goods related to the sale of products in inventory

and  Gross profit margin which can be expressed in dollars, as a percentage, or both. As a

percentage, the GP margin is always stated as a percentage of revenue. Operating expenses

which  Includes all overhead and labor expenses associated with the operations of the

business.total expenses net profit depreciation interest and taxes are among other financial

factors the company should consider

The Auto edge company  has a vital and important influence towards the structure of the

industry, as well as the overall profitability of individual company  The economic variables

pertains on the different costs which will be shouldered by the foreign investors upon entering a

given market or country. For instance, the changes in the interest rate and exchange rate. Foreign

operations is in demand of vital commitment in capital, particularly if they are undertaken in

capital intensive sectors, where in there is high economies of scale  On the other hand, according

to the company

The availability of important resources is also important in the process of

choosing the appropriate location , particularly the issue of human resource or labor force. The

availability of skilled workers, together with the cost of skilled labor is important. This is

because it enables the company to gain and maintain competitive advantage by having the best

labor force for different procedures in the business,  marketing, management and different

foreign operations.  availability of high-skilled worker, at the same time, low paying labor force,

which enables multinational companies to take advantage of that cost-reduction in the overall

production and manufacturing.

Above all, it is important to focus on the openness of the economy or the liberalization of

the foreign economic transaction of the company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REFERENCES:

 

Griffin, R. W., & Ebert, R. J. (1991). Business. Englewood Cliffs,: Prentice Hal.

Walker, M. L., & Wright, H. (1938). Urban blight and slums : economic and legal factors in their origin, reclamation, and prevention. Cambridge: Harvard University Press,.