Objective

* To achieve competitive advantage

* To maximize the benefit of location to the firm
* To determine an optimal facility location
* To prove that the optimal facility is a good investment

Labor costs have decreased in Hongkong when its sovereignty was transferred back
to PRC.
* Hongkong enjoys a large seaport and very good transportation infrastructure,
and this is important in moving in raw materials and moving out finished..

Answer 1. Singapore Advantages Labor relatively cheap, Good transport

infrastructure ? Incentives offered to stay. Disadvantages: ? Increasing labor costs ?
Increasing utility costs. Malayasia Advantages: 1. Access to raw materials and
natural resources 2. Inexpensive labor Disadvantages: 1. Concern with frequency of
ship visits. 2. Transportation cost increased. Hong KOng Advantages: 1. Labor
consistently cheap and 2. Good transport infrastructure. Disadvantage: 1. High Cost
2. What other relevant factors that are not mentioned in the case study might play
a role in this decision?

Finding a Location for Electronic

Component Manufacturing
in Asia Case ACM ACM is an electronic components manufacturer located in
Singapore since 1991, providing products original equipment manufacturer (OEM)
with good quality over the last few years. ACM is under pressure from
manufacturers located in other countries. In singapore alone, labor is still quite
expensive, there has been a relatively stable despite an increase in labor costs. In
addition, there was an increase also in the cost of utilities, especially water and
energy costs have led companies to think to run the operation by building a plant in
Asia in an effort to make the company more competitive.ACM still achieve a profit in
its operations, but the profit margin has shrunk, and management must ensure that
the company remains competitive on a competitive basis in the medium and long
term to face competition from other manufacturers. ACM In this case there are two
sites that were proposed by management, namely Hong Kong and Kuching
Advantage
Hongkong
There are Piers large, transportation infrastructure was nice so it's easier
meyalurkan Finished Goods and Direct labor cost is relatively cheaper than

Direct labor cost in Singapore What are the advantages and disadvantages
location offered by
management senior? Without the transport infrastructure is adequate then the
distribution activity is inhibited then before deciding on a location, so must pay
attention to the infrastructure such as the road is adequate, rail, sea conditions, and
the air was adequate and the government's readiness to participate in improving
the infrastructure is the added value in determining a location , because although
the Hard Rock is one of the very well-known trademarks in the world, this is not
natural everywhere. Location is an important element in predicting revenue for the
company including the purchasing power of a region, competitors, the physical
quality of a location. Franchise
a Cafe Risks Legal Tenaga
Kerja Some Many Few Condition Hard Rock
Prefer Choose Differentiation (cc) photo by twicepix on Flickr (cc) photo by tudor on
Flickr Kuching (Malaysian province of Sarawak)
State 4th largest in Malaysia with a total population of 650,000 soul
Transport Infrastructure that supports
Raw Materials and Finished Goods can enter and exit easily
Labor costs Cheaper disadvantage What distinguishes Hong Kong and Kuching is the
port of Kuching is not as big as the port of Hong Kong, and ships calling at the port
of Kuching less than Hongkong port factor other relevant are not mentioned in this
case study that may play a role in the decision-making locations? 1. Risk of
Exchange Rate and Currency
2. Political Risks, Values, and Culture
3. Proximity to markets
4. Proximity to suppliers Why transport infrastructure is essential in making location
decisions? Hard Rock Cafe Some people would say that Oliver Munday, Vice
President for the development of Hard Rock Cafe, has done the best job in the
world. Travel the world to build a Hard Rock Cafe Next, select a city, and found the
location ideal. Munday do not just finding the final location will be used as the Hard
Rock Cafe, but he designed the building design with the architects and building
planners and stay until the day of the opening of the cafe and one year sales. Why
Hard Rock a serious effort to analyze the location? Thank You For Your Attention ...
small

FINDING A LOCATION FOR ELECTRONICS COMPONENT MANUFACTURING IN ASIA 1.

What advantages and disadvantages does each potential location offer? Singapore
Advantages: labor relatively cheap, good transport
infrastructure and incentives offered to stay.
Disadvantages: increasing labor costs and increasing utility costs. Hong Kong
Advantages: labor consistently cheap and good transport infrastructure.
Disadvantages: no specific disadvantage has been identified
in the case but students should attempt to discuss this further. Malaysia
Advantages: access to raw materials and natural resources inexpensive labor.
Disadvantages: Concern with frequency of ship visits.
2. What other relevant factors that are not mentioned in the case
study might play a role in this decision?
The education of the workforce (both current workforce and
future generations) as well as political stability will impact the decision.
3. Why is transportation infrastructure so important in this decision?
Since ACM is reliant on logistics for raw materials and
transporting final products to customers, transportation costs
(both current and expected development of the costs) will
doubtlessly have a large impact on the decision.
4. This is a longterm strategic decision; what factors might change in the next ten to twenty years?
How will this influence the decision?
Since the plant will pay for itself over a long time horizon,
decision relevant costs must be examined not only at their
current level but also how this is expected to develop over
the horizon. Examples of costs which are likely to change
and whose change would make or break the decision would
include labor costs, utility costs, raw material costs, transport
costs. Also other difficult to forecast developments such as exchange rates and
political stability will impact the profitability.

5. Which alternative would you recommend, under which circumstances?

Answers will vary but students should discuss how to approach
the problem of selecting the appropriate location. For example,
if possible, students should explore the use of factor rating method for this problem