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Project #4

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Alan Nguyen

on 20 November 2015

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Transcript of Project #4

by: Alan Nguyen, Tommy Herndon, Liliana Mendez, Victor Horta, Nichole Romero, Juvenal Casas
Project #4 China Dynasty
U.S and China Workforces
Labor force of U.S: 155 million China's: 798.5 million
Per Capita of U.S: $50,700 and China's Per Capita: $9,300
U.S imports/exports: $2.299 trillion/$1.564 trillion
China's imports/exports: $1.735 trillion/$2.057 trillion
Quality of products is normally low versus U.S which is good.
Reasons for Manufacturing in other Country
United States
How U.S Produce Goods in China
Mostly by offshoring: relocating a business in another country
Companies such as: KFC, General Motors, Microsoft, and Nike.
Can also be done by join venture: a business forming a partnership
Companies such as: Cooper Tire & Rubber Co shared by U.S tire maker and Chengshan Group Co Ltd
Offshoring Impact on Domestic Economy
United States
Issues Manufacturing in China:
No incentives to motivate workers to do their jobs.
Poor quality products.
Environment can be unsanitary and polluted.
Workers underpaid and overworked; can lead to protest and boycotts.
How to Address Quality Issues in China
Specialization by task; a specific person check the products.
Have everyone check for issues in products throughout the process.
Check earlier in the process; less damaging in costs.
Determine customers defintion of "high quality"
Main Goal
To determine whether our stuff animal, which is a pony, to be manufactured in the U.S or China base on individual research and a decision matrix.
Factors to Consider:
Comparison of China and U.S. workforces.
Reasons U.S. companies have goods produced in China and reasons China chooses to produce goods for U.S. companies
How U.S. companies get goods produced in China.
How off shoring impacts the domestic economy.
What problems U.S. companies encounter with goods produced in China.
How quality issues with goods produced in China could be addressed.

Lower labor cost
Mass Productions
Expand Business which increases more sales
Resources: Hydropower
Producing inside the biggest Client
Saves on transportation and fuel cost
Higher Quality
Better Technology and resources
Increase production rates = sell more products
Lower labor cost = lower cost for production which means more profits.
Save cost on transportation = recieving more profits for company
Higher Quality = sell more product
Decision Matrix
China is the best choice to have the production of pony stuffed animals be manufactured in. The combination of low costs and large production can result in greater profits. In the long run China will benefit more. Ultimately in the business world ethics. If China were to address the quality issues, the pros weighs out its cons.
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