Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)
11th Edition
ISBN: 9780135639221
Author: Jay Heizer, Barry Render
Publisher: PEARSON+
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Question
Chapter 8, Problem 2.4VC
Summary Introduction
Introduction:
Company HR Vice President for café development, Person OM, has the job to select the ideal country, region and city for expansion of company HR and establish its new site. Though the job seems easy as it is said, it involves lot of front and back end work. Person OM has to do lot of research to choose the country and the city and has to negotitate with the local dealers to fix a reasonable cost for setting up the new plant and he stays with the plant for sales up to one year.
Person OM is currently engaged in global expansion in country E, LA and A and has to look at the polititical risk, currency and social norms and proper fitting of the brand in the particular region. His research consists of extensive checklist such as demographics, market, trend analysis, transportation, restaurants, night clubs, political risks, real estate market and HR comparable market analysis.
The site location has been focused on city centeres like city M and B and to find local franchise partner in both location. The company has made decision for 10-15 year of commitment in its operation in the selected location and it employs tools like location cost-volume analysis. It helps to make decision whether to purchase or reconstruct an existing facility. The data obtained are given below.
| Factor | European city under construction | Importance of this factor at this time | |||
| A | B | C | D | ||
| A. Demographcis | 70 | 70 | 60 | 90 | 20 |
| B. Visitor market | 80 | 60 | 90 | 75 | 20 |
| C. Transportation | 100 | 50 | 75 | 90 | 20 |
| D. Restaurants/night clubs | 80 | 90 | 65 | 65 | 10 |
| E. Low political risk | 90 | 60 | 50 | 70 | 10 |
| F. Real estate market | 65 | 75 | 85 | 70 | 10 |
| G. Comparable market analysis | 70 | 60 | 65 | 80 | 10 |
To determine: The circumstances and condition under which company HR prefers to franchise a café.
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Chapter 8 Solutions
Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)
Ch. 8 - Prob. 1EDCh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQ
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