Weekly tasks or assignments (Individual or
Group Projects) will be due by Monday and late submissions will be
assigned a late penalty in accordance with the late penalty policy found in
the syllabus. NOTE: All submission posting times are based on midnight
The pharmaceutical industry went through many
changes in the 1990s and the early 21st century. The North American Free
Trade Agreement (NAFTA) made a significant impact on Canadian manufacturing.
The trade barriers were removed, and the company began to question whether it
was cost-effective to keep manufacturing products in Canada with higher labor
costs and much higher taxes. In addition, the 245 acres of land at which the
facility was located was near a prime residential area and within a mile of
Lake Ontario just outside of Toronto. The land alone was worth over
Analyze whether or not the company should
continue manufacturing in Canada or if it should move back to the United
States. This requires research into transportation cost estimates from
Colorado to Toronto. It also requires analyzing the impact on company image
by shutting down a facility in Canada.
Draft your recommendation to management.
Include the following with your recommendation:
The estimated costs and benefits of shutting down the Canadian
facility or keeping it open
Operations mgmt scenario.docx