BSM-340 Purchasing and Global Sourcing case study 7

Description

Watch the “Continental Tire: Pursuing a Winning Plant Decision” video (https://mediaplayer.pearsoncmg.com/assets/Bn3cDC6_DOtSqb0jhFm2YRaDynkbGO9h)

Question:

Consider the dominant factors for manufacturing as described in the text. Briefly describe how each one may have influenced Continental’s decision to locate its new plant in Sumter, South Carolina, instead of Mexico or Costa Rica.

South Carolina is also home to manufacturing plants for major tire competitors Michelin and Bridgestone. How might these two plants factor into the company’s location decision?

Explain why locating a plant solely on the basis of low labor costs may be the wrong approach.

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