Ciao Manufacturing Location (Scenario)
An Italian car company, Ciao, has made plans to expand its operations by building a manufacturing facility in a foreign market. Ciao has been very successful selling its small, economical, and stylish cars in Italy and Spain, and firm managers believe that Ciao cars will be equally profitable in other markets. Ciao managers are trying to determine whether Canada or Russia would be the best location for a new automobile manufacturing facility.
-Which of the following questions is most important for Ciao managers to evaluate in their decision regarding the location of the new manufacturing facility?
A) What would be the costs and availability of skilled labor in Canada and Russia?
B) What other industries manufacture products in Canada and Russia?
C) How much time will it take to train managers in Canada and Russia?
D) How should the current marketing strategies be modified to serve markets in Canada and Russia?

Question

Quizplus · Accepted Answer

The costs and availability of skilled labor are crucial factors in determining the feasibility and profitability of a manufacturing facility, directly affecting production efficiency and cost management.