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opening a new facility in China

After conducting a SWOT analysis on competitors operations, the Uniform and Linen Leasing Company (U&L) discovered one of their largest and looming threats is in the area of increased operational costs.

Some of these expenses are: rising labor wages, worker's compensation, an increased and aging retirement population with pensions and miscellaneous benefits, rising state unemployment insurance, and rising healthcare costs.

U&L has decided to expand and open a manufacturing facility in China as part of their strategy to lower these types of expenses. The plant will be used to manufacture uniforms.

In addition, would it be agreeable to opening a new facility in China will alleviate increased operational costs for U&L? Describe benefits and challenges to support your answer.

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The opening of new facility will China will definitely help in reducing the operational costs for U&L because of extremely cheap labor force in China. The cost of manufacturing in China will be lower due to lower salaries, less expenditure on ...

Solution Summary

After conducting a SWOT analysis on competitors operations, the Uniform and Linen Leasing Company (U&L) discovered one of their largest and looming threats is in the area of increased operational costs.

Some of these expenses are: rising labor wages, worker's compensation, an increased and aging retirement population with pensions and miscellaneous benefits, rising state unemployment insurance, and rising healthcare costs.

U&L has decided to expand and open a manufacturing facility in China as part of their strategy to lower these types of expenses. The plant will be used to manufacture uniforms.

In addition, would it be agreeable to opening a new facility in China will alleviate increased operational costs for U&L? Describe benefits and challenges to support your answer.

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