GB511C Strategic Resources Management Final Exam Essay

GB511C Strategic Resources Management: Final Exam Adam J. Franco Norwich University Professor Laurette Brady November 16, 2013 Manufacturing today includes all facets of research, development, production, sales, distribution, logistics, customer service, marketing, and support. It extends from the making of physical products to the delivery of services (Deloitte, 2013). Manufacturing companies now compete on a global scale and utilize specific locations around the world to their advantage. For instance, basic, simple to make products will be produced in an area with cheap, low education labor. While products that use high tech machinery that require a skilled labor force would need to be produced†¦show more content†¦For this manufacturing company they would have to produce their high-end items in the United States and would probably benefit from establishing their headquarters in the US as well. The security and elaborate IT infrastructure of the United States will increase their ability to command and control their global operations in Mexico, Turkey, and France. Mexico Mexico is the United States’ second-largest export market and third-largest trading partner. Many large global companies have chosen to locate significant manufacturing operations in Mexico, particularly along the U.S. Mexican border (TACNA, 2013). Mexico is in a strategic location to large US consumer base. Many US companies manufacture their goods in Mexico and use trade agreements and established distribution channels to flood the American market. The human capital in Mexico has significant advantages to a manufacturing company. Their labor cost are about 25% lower then the United States, and the laborers work a standard 48 hours work week (TACNA, 2013). In the last couple of decades, Mexico has dramatically increased its numbers of university and technical schools. This investment in education instills confidence that a technically capable workforce will only grow in size in the future. Organizational capital in Mexico is not as significant a hurdle as in other locations. One of the biggest miscalculations that Western business people make when dealing with Asian cultures is the huge culture gap. â€Å"In