In the 20th century, many organizations focused on goals, cost, and efficiency in production to keep a business profitable. In today’s business environment, for businesses to remain sustainable a competitive advantage must be maintained either by price, new product ventures, location, innovation in the marketplace, etc.
You will begin to put together the process of bringing a new product line into Great Start Nutrition’s business model to stimulate growth in a new product sector, infant formula, while remaining true to the company’s current Mission “Our products ensure healthy living and healthy people.”
This new Infant Formula Division of Great Start Nutrition will be located overseas with the location selection between China and Malaysia. The company intends for the new division to be a leader in the use of sustainable products using the latest innovations for production and delivery to its global customers.
Several factors will help to drive a good location strategy. Labor costs, transportation costs, foreign tax burdens, and tariffs are some of the major factors that lead many organizations to seek certain location as a main focus of their drive for competitive advantage. These factors will allow Great Start Nutrition gain a competitive advantage from the start of its new venture into the production of infant formula. In addition to the traditional factors of location you will need to consider the access to organic and sustainable products as you make this decision. Remember, there are several types of formula so weigh the many types of ingredients that will be needed to access ingredients as you set out to make a decision on location to gain the strongest competitive advantage.
Consider this information:
Recently, Beatrice Taylor, the granddaughter of Barney Pfife who held the reins of the R&D department for Great Start Nutrition Health in 1965, retired and Beatrice’s own granddaughter, Helen Crump, took over the department. Helen is qualified for the job. She was a Phi Beta Kappa graduate of the University of Maryland College Park with a double major in Botany and Food Science. She minored in Business Management. She had worked in the plant in Chicago every summer since High School and had reproduced and revised all her grandmother’s and great-great grandmother’s recipes. Starting full-time at 22 years of age Helen got along with everyone in the department but at 27 Beatrice thought she may be too young to assume the position, but Helen has shown strong managerial and leadership qualities since stepping into the role. Helen wants the company to be a leader in innovative ways to be a sustainable company using green technologies as well as friendly to the environment, animals, and human health.
Warren Pfife, the President, CEO and Barney Pfife’s grandchild, decided the challenge of deciding on a location for the new Infant Formula Division as well as the search for an Executive Director would fall on Helen. Since Helen is passionate about keeping business focused on all-natural products and developing eco-friendly packaging, Warren believes the company will bring in someone who will seek innovative, green, and sustainable ways to bring Great Start Nutrition into this new venture effectively, while also ensuring the products are designed, developed, tested and delivered with the organizations Vision and Mission in mind.
Helen has contracted a small minority owned consulting firm, Mayberry Consultants, to conduct research on the best location for the new plant that meets Great Start Nutrition’s expectations. The consultancy firm is also able to launch the new products per Helen’s mandates for green sustainability and innovation. A group has been assembled within the firm to decide on a location for the plant. Helen has narrowed her preferences down to China and Malaysia, and wants the firm to present the best option to her.