Cambridge Cooling Systems Global Operations Strategy Case Solution

1. Are the cost savings resulting from moving production to Mexico worth the hassle for David?

Certainly, that's not enough to justify much effort considering technologies have advanced in recent generations. Overall, thus compared to Simon, labour and overhead costs are cheaper in Guatemala, although fundamental commodity costs remain exactly comparable in these two locations. It should be most economically efficient to acquire replacement technology instead of dismantling and moving existing machinery from Quebec to Baja (which will spend 10 million dollars on technology). This must additionally take effort to educate personnel in Mexicans because Mexico currently has fewer staff (20 in the M phase as well as Forty at Interphase), and the G1plant is underdeveloped, which must be appropriately employed aside from shifting technology from Massachusetts to it since they possess less competence within mechanical field. Those financial reductions, thus claimed Dave, could be good enough to justify the bother of shifting output to Mexicans. 

Secondly, Charles suggested that shifting highly specialized goods manufactured between Quebec and Guatemala might be risky. As such happens, before the entire shift, Johnson had to provide a blueprint to Johnson that included the requisite budgetary reason, as well as exact specifics concerning exactly the change, which will indeed really be being carried out. Andrew feels that perhaps the directors affecting business management might become potentially cognizant of the effects of relocating manufacturing mostly on the municipality as well as inhabitants because Boston Air Conditioning technologies has always been a business established there in immediate society for almost three decades. Additionally, any move should indeed be extremely challenging to implement, with the danger of damaging the company product's reputation and consumer connections. As a result, Andrew argues suggested rather than modifying the current production approach, and they should explore different cost-cutting options as well as wait for such marketplace to recover back.

2. How do you think Harris Bell will react to a recommendation to move production to Mexico?

Diamond Ring should respond negatively, quite likely by denying it at the exactly consequently correct time, considering shifting machinery beyond their holding organization (Boston) would not only harm the residents among shareholders throughout which we have placed great faith for these same past eighty months. Even a recent acquisition of machinery should indeed be assessed, but rather highly competent scientist overseeing tactics somewhere at Chromosome facility (as his usability), your Suffolk production was sometimes utilized to supply items for remote geographies, for example, the Arab World. Then there might be distribution network concerns because University already handles schedules, and marketing, including transportation, as well as major providers have been indeed headquartered same close facility, so relocation isn't an alternative.