You have been asked by the CEO to join a senior team that has been created to explore the possibility of setting up the firm’s first wholly owned subsidiary outside the United States. The company has been exporting a limited number of products to the region for several years, but as demand has increased, he is considering the possibility of setting up some form of manufacturing operation to reduce manufacturing and distribution costs and get closer to the customer. Even though the CEO has engaged in talks with several economic development groups in the region, he has not yet decided which location would be the best place to enter the market to support the company’s long-term business strategy.
As a key member of the team, your job is to develop a high level Logistics and Supply Chain Management Plan to explore the feasibility of establishing a wholly owned subsidiary in the Philippines.
As part of the process, he has asked you to:
· Conduct an environmental assessment of Philippines
· Identify major logistics and supply chain management issues associated with setting up a wholly owned subsidiary in the Philippines.
· Provide your recommendation as to what is the best city to establish a manufacturing and supply chain operation to meet the long-term goals of the company.
· Prepare a high level logistics and supply chain management plan to support the location recommended above.
I. Logistics Infrastructure Assessment (Philippines)
II. Location recommendation and rationale, which may include one or more of the following:
· Availability and quality of suppliers
· Availability and quality of third party service providers
· Tax holidays or other incentives
· Quality of life for employees
· Other factors that may be relevant for the Philippines – whatever you think may provide firm with some form of competitive advantage.
A mimium of 5 pages.