In the 20th century, many organizations focused on goals, cost, and efficiency in production to keep a business profitable. In today’s business environment, for businesses to remain sustainable a competitive advantage must be maintained either by price, new product ventures, location, innovation in the marketplace, etc.
You will begin to put together the process of bringing a new product line into Great Start Nutrition’s business model to stimulate growth in a new product sector, infant formula, while remaining true to the company’s current Mission “Our products ensure healthy living and healthy people.”
This new Infant Formula Division of Great Start Nutrition will be located overseas with the location selection between China and Malaysia. The company intends for the new division to be a leader in the use of sustainable products using the latest innovations for production and delivery to its global customers.
Several factors will help to drive a good location strategy. Labor costs, transportation costs, foreign tax burdens, and tariffs are some of the major factors that lead many organizations to seek certain location as a main focus of their drive for competitive advantage. These factors will allow Great Start Nutrition gain a competitive advantage from the start of its new venture into the production of infant formula. In addition to the traditional factors of location you will need to consider the access to organic and sustainable products as you make this decision. Remember, there are several types of formula so weigh the many types of ingredients that will be needed to access ingredients as you set out to make a decision on location to gain the strongest competitive advantage.
Consider this information:
Recently, Beatrice Taylor, the granddaughter of Barney Pfife who held the reins of the R&D department for Great Start Nutrition Health in 1965, retired and Beatrice’s own granddaughter, Helen Crump, took over the department. Helen is qualified for the job. She was a Phi Beta Kappa graduate of the University of Maryland College Park with a double major in Botany and Food Science. She minored in Business Management. She had worked in the plant in Chicago every summer since High School and had reproduced and revised all her grandmother’s and great-great grandmother’s recipes. Starting full-time at 22 years of age Helen got along with everyone in the department but at 27 Beatrice thought she may be too young to assume the position, but Helen has shown strong managerial and leadership qualities since stepping into the role. Helen wants the company to be a leader in innovative ways to be a sustainable company using green technologies as well as friendly to the environment, animals, and human health.
Warren Pfife, the President, CEO and Barney Pfife’s grandchild, decided the challenge of deciding on a location for the new Infant Formula Division as well as the search for an Executive Director would fall on Helen. Since Helen is passionate about keeping business focused on all-natural products and developing eco-friendly packaging, Warren believes the company will bring in someone who will seek innovative, green, and sustainable ways to bring Great Start Nutrition into this new venture effectively, while also ensuring the products are designed, developed, tested and delivered with the organizations Vision and Mission in mind.
Helen has contracted a small minority owned consulting firm, Mayberry Consultants, to conduct research on the best location for the new plant that meets Great Start Nutrition’s expectations. The consultancy firm is also able to launch the new products per Helen’s mandates for green sustainability and innovation. A group has been assembled within the firm to decide on a location for the plant. Helen has narrowed her preferences down to China and Malaysia, and wants the firm to present the best option to her.
Things to Consider for Each Location:
Recent news on contaminated products making their way into the US
Ease of access to dairy farms
Recent green initiatives
Research on regulations for importing food items from China to the United States and European Union (as they will be the largest purchasers)
Do not focus the decision solely on the cost of labor and real estate
There is no dairy farming in Malaysia; where would you bring in your milk for products from cows milk, i.e. New Zealand
Access to other products for formula development other than cow’s milk
Recent green initiatives
Research on regulations for importing food items from Malaysia to the United States and European Union (as they will be the largest purchasers)
Do not focus this decision solely on the cost of labor and real estate
For this exercise, you will act as the group lead from Mayberry Consultants, assigned to Great Start Nutrition. You are preparing your research and putting together a document with your rationale for the selection of the location. Make sure the document clearly provides headings to guide the reader.
Due Date: Week 2 – Saturday 11:59 p.m. eastern time.
Determine the best location for Great Start Nutrition’s new manufacturing and distribution plant for infant formula.
Possible locations: China or Malaysia.
Step 1: Course Material
Although you are required to research information for this project, you are also accountable for using the course material and case scenario facts to support the ideas, reasoning and conclusions made. Course material use goes beyond defining terms but is used to explain the ‘why and how’ of a situation. Using one or two in-text citations from the course material in the paper and then relying on Internet source material will not earn many points on an assignment. In fact, Internet resources are limited to the research related to those items under Step 2. A variety of course material is expected and what is presented must be relevant and applicable to the topic being discussed. Avoid merely making statements but close the loop of the discussion by explaining how something happens or why something happens, which focuses on importance and impact. In closing the loop, you will demonstrate the ability to think clearly and rationally showing an understanding of the logical connections between the ideas presented in a case scenario, the course material and the question(s) being asked.
Step 2: Write an Introduction paragraph
The Introduction paragraph is the first paragraph of the paper and will be used to describe to the reader the intent of the paper explaining the main points covered in the paper. This intent should be understood prior to reading the remainder of the paper so the reader knows exactly what is being covered in the paper.
Write the introduction last to ensure all of the main points are covered.
Step 3: Research
You will research the two locations to assess the following. In completing the research, you will draw from various source documents that provide you specific information about the country. You will also use a wide array of course material. What this means is that external sources are related to the information about the country and the internal material is used to support your reasoning. Remember, this exercise is about the planning process.
Foreign tax burdens
Additional relevant factors related to the decision.
Step 4: Two Locations
Compare and contrast the differences between the two locations;
Step 5: Best LocatiMake a determination of the best location supporting your reasoning using both the research and the course material. Students must use the course material to support the reasoning. Course material is located under Content. You are not defining terms but using the course material to support your reasoning.
COURSE READING: https://courses.lumenlearning.com/boundless-management/chapter/adapting-and-innovating/
Make a determination of the best location supporting your reasoning using both the research and the course material. Students must use the course material to support the reasoning. Course material is located under Content. You are not defining terms but using the course material to support your reasoning.O