3-2 Milestone One: Defining Goals Southern New Hampshire University 09:06:04 GMT -05:00 Defining Goals Problem Statement Phone Systems Inc. has the goal of opening a new facility in India. This would allow the company to meet the demands of customers worldwide as well as cut costs due to the ...
Phone Systems Inc. has the goal of opening a new facility in India. This would allow the
company to meet the demands of customers worldwide as well as cut costs due to the shipping
and manufacturing of products for overseas customers and merchants. The proposed solution is
to close one of the existing facilities located within the United States to liquidate the assets to
fund the new overseas facility. The most efficient process would be to close the facility with the
lowest levels of production, sales, and customer & employee satisfaction. This would allow the
company to funnel those funds and assets into a new facility in a desirable location within India.
This gives the company a competitive edge in manufacturing and supplying products to overseas
customers. This could potentially save the company money on the shipping costs of parts
shipped into the US that are needed to manufacture the company’s products and on shipping
those company products to overseas merchants and direct consumers. This is a huge benefit and
cost-saving move for the company considering the huge spike in the costs of overseas shipping.
The has been a recent increase in shipping costs as high as 547% with almost 80% of all goods
being shipped overseas (Longley, A., Bosley, C., & Hipwell, D., 2021). For example, it costs an
average of $10,522 to ship a steel container from Shanghai to the Netherlands. Global retail sales
are also projected to be upwards of 26.7 trillion dollars by 2022 (Statista., 2021). With global
sales on the rise and the increasing costs of overseas shipping, it makes great economical sense
to open a facility overseas. Being directly in the middle of the Eurasia market, India also makes
the most logical choice of location for a new facility.
09:06:04 GMT -05:00
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller newage. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
