Hayco: Moving Manufacturing to the Caribbean, Mexico, or Central America

內容大綱
In 2018, Christopher Hay, president and chief executive officer of Hayco, the top contract manufacturer to the brush industry globally, had been looking for a new location for some of its operations due to over a decade of rising labour costs in Hong Kong, China, where the company was based. The company accelerated its search in response to the US government’s announcement of tariffs against Chinese products in April 2018. Hayco was seeking a location closer to the US and European markets where labour costs were still low for an initial workforce of over one thousand employees and where there was no threat of tariffs. Hay’s focus was on Mexico, the Caribbean, and Central America. Hay considered questions such as, “What is the best market to which Hayco could move its operations? Should it establish a new subsidiary on its own or locate within a special economic zone?”
學習目標
This case is suitable for use in an international business or strategic management course. With its focus on market entry and selection, it will likely be used earlier in the course. If used in a module on partnering, it may be positioned later in the course. The case is suitable for use in undergraduate- and graduate-level courses. After reading and discussing the case, students should be able to do the following:<br><br><ul><li>Identify the relative merits of countries that a manufacturing company is considering for relocation.</li><li>Recommend which country best fits the company’s needs.</li><li>Understand in detail the merits of locating in special economic zones.</li></ul>
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