Deliverable Length: 1000 - 1500 words 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 $7,000,000. 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 o financial o nonfinancial • Create a 12-month based action plan
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Reducing cost of running a company
Businesses are always operating in tight business environment and stiff competition from
other businesses, stiff competition from other businesses makes the business to find a way to cut
down on expenses to ensure their price in the market is similar to business rivals to maintain
customers. There are several costs in the business that are making have high operational costs.
For instance, if a business is operating in an environment where tax cuts are high or labour is
expensive to find because the surrounding business environment does not have skilful workers.
The business therefore has to import labour from foreign destination. A business operating in a
foreign country it is likely to find the government in that country taxing the business highly to
frustrate or ensure the money benefits its own people and surrounding community. In other
situations, the business has to buy all its assets because it cannot find available for hire, such
expenses are a problem because the business will incur heavy expenses and, in the end, it’s
almost impossible to make profit (Moritz, Immanuel).
A company may wish to reduce the operational costs, there are several ways of reducing
costs for a firm operating in a foreign country. The company can decide to relocate the
production plant back to the USA. The company may also decide to relocate pr...
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