Israel - Report

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Group Project Format

Israel

In this course you will complete a group project focused on setting up a firm's first wholly owned subsidiary outside of the United States. Review the background information below:

You have been asked by the CEO to join a senior team that has been created to explore the possibility of setting up the firm’s first wholly owned subsidiary outside the United States. The company has been exporting a limited number of products to the region for several years, but as demand has increased, he is considering the possibility of setting up some form of manufacturing operation to reduce manufacturing and distribution costs and get closer to the customer. Even though the CEO has engaged in talks with several economic development groups in the region, he has not yet decided which location would be the best place to enter the market to support the company’s long-term business strategy.

As a key member of the team, your job is to develop a high level Logistics and Supply Chain Management Plan to explore the feasibility of establishing a wholly owned subsidiary in Country X

As part of the process, he has asked you to:

Conduct an environmental assessment of Country X.

Identify major logistics and supply chain management issues associated with setting up a wholly owned subsidiary in Country X.

Provide your recommendation as to what is the best city to establish a manufacturing and supply chain operation to meet the long-term goals of the company.

Prepare a high level logistics and supply chain management plan to support the location recommended above.

My section for the group project is:

  • Executive Summary: Sabrina
  • Location recommendation and rationale, which may include one or more of the following: Sabrina

Proximity to raw materials and/or markets

Availability of land, labor, or other resources

Quality of the local infrastructure Availability and quality of suppliers

Availability and quality of third party service providers Tax holidays or other incentives

Quality of life for employees

Other factors that may be relevant for your site -- which you think may provide your firm with some form of competitive advantage.

Unformatted Attachment Preview

LGMT 685 Group Project Format Israel I. Executive Summary Sabrina II. Environmental Assessment (for entire country) Ryan Physical Setting Map of country Population density and distribution Major cities and possible sites for locating operation Economic Factors Current employment rate Minimum wage and prevailing wages Average income, in local currency and US$ equivalent Purchasing power parity Income distribution Membership in regional trading blocks Major industries and products Labor Force Labor unions (if any) Quality and availability of labor force Population education, literacy levels, and skills Special issues affecting expatriate workers (if any) Government sponsored training programs Legal and Political Environment Assessment of political stability and risk Employment law that may impact your business plans or strategies Requirements of any trading block memberships Immigration law Work permits for foreign workers Work rules for spouse of expatriate workers (if any) Culture Language (s) Religion (s) Dominant cultural values Work motivation and practices Values, beliefs, and attitudes Gender attitudes and issues Hofstede dimensions (optional) Other cultural issues for expatriates Page 1 of 3 III. Logistics Infrastructure Assessment (for entire country) Chris Transportation infrastructure Highways Rail Water Air Pipelines Intermodal Warehousing and distribution infrastructure Communication infrastructure Utilities, etc. IV. Location recommendation and rationale, which may include one or more of the following: Sabrina Proximity to raw materials and/or markets Availability of land, labor, or other resources Quality of the local infrastructure Availability and quality of suppliers Availability and quality of third party service providers Tax holidays or other incentives Quality of life for employees Other factors that may be relevant for your site -- which you think may provide your firm with some form of competitive advantage. V. Logistics and supply chain management plan (to support the site selected above) which should include, but not be limited to: Ryan Planning and forecasting strategy Sourcing and procurement strategy Inbound and outbound transportation strategy Warehouse/distribution center strategy Inventory management strategy Outsourcing/3PL strategy IT strategy Organizational structure for the logistics function HR strategy including: Recruitment and selection plan that addresses who will run the operation (i.e., parent country nationals or host country nationals) and where other labor will come from Training and development plan, including pre-departure training and orientation if necessary Compensation and benefits strategy Employee performance management plan (i.e., is performance managed using local standards or parent country standards or some mix) Labor relations strategy Repatriation strategy, when required Page 2 of 3 Performance management strategy High level logistics and supply chain metrics How you will know if you have succeeded VI. Next Steps -- a short list of next steps to be taken once the plan is approved. Chris Page 3 of 3
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Explanation & Answer

Attached.

Outline
Introduction
Body
Conclusion
reference


Running Head: LOGISTICS AND SUPPLY CHAIN MANAGEMENT PLAN

Logistics and Supply chain Management Plan for Setting up a Firm in Israel
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LOGISTICS AND SUPPLY CHAIN MANAGEMENT PLAN

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Logistics and Supply Chain Management Plan for Setting up a Firm in Israel
Executive Summary
The purpose of this report is to provide a logistics and supply chain management plan for
a firm based in the United States that is venturing into establishing its first wholly owned
subsidiary outside the US. The country of focus is Israel. The reason for this is due to the
growing demand for its products in Israel. The firm is aiming at reducing its production and
distribution costs as well as to be closer to the customers. This will, in the end, increase its
returns from the company. However, setting up a firm in a region that is unfamiliar could be
quite challenging due to the number of logistics that have to be put into consideration. This
report looks into some of the essential issues that the company has to put into the account before
starting its operations in Israel.
The report is divided into six parts (this being the first one) each covering a distinct
factor. The second part looks into the environmental factors that are likely to affect the
operations of the manufacturing company once it is set in Israel. The ecological assessment
covers the physical setting of the country which includes the map of the country, the distribution
and density of its population and some of the major cities that could be possible sites of location....

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