Expansion Plan for Sawmill in Czech Republic
Expanding Morning Woods Manufacturing Intl. to the Czech Republic
Executive Summary
To continue providing the high levels of return on investment for our investors, Mornings Woods Manufacturing International should not pursue an expansion effort in the Czech Republic but should continue to look into international expansion in other countries throughout the world. We are confident that the use of the decision criteria to evaluate an array of countries will identify a more suitable candidate for the company’s expansion project.
After careful analysis we have found that the Czech Republic does not have the proper access to the cost effective modes of transportation for large quantities of raw materials and finish goods to and from the facilities. Furthermore, the companies currently operating in the Czech Republic other than the international players like Mayr-Meinhof and Stora Enso are losing money at an alarming rate. We believe that this is because the market is flooded with competition causing a surplus that is driving prices down and costs up. Other issue we found to be a problem were passed legislation restricting foreign firms ability to purchase land and consume natural resources.
Through this feasibility study of the Czech Republic as a location for international expansion we have concluded that the need for expansion to continue to growth and prosperity is there, but this is not the proper location to start the campaign. In the continued search for expansion opportunities, the following key attributes must be met to establish manufacturing or marketing operations in a foreign country. * Accessibility to rail systems and/or commercial use waterways. To maintain a competitive edge Morning Woods will need access to efficient low cost methods of shipping, capable of facilitating the transportation of large quantities of heavy and bulky materials and finish goods inherent of the lumber industry. * Favorable Legislation on import/exports,
Executive Summary
To continue providing the high levels of return on investment for our investors, Mornings Woods Manufacturing International should not pursue an expansion effort in the Czech Republic but should continue to look into international expansion in other countries throughout the world. We are confident that the use of the decision criteria to evaluate an array of countries will identify a more suitable candidate for the company’s expansion project.
After careful analysis we have found that the Czech Republic does not have the proper access to the cost effective modes of transportation for large quantities of raw materials and finish goods to and from the facilities. Furthermore, the companies currently operating in the Czech Republic other than the international players like Mayr-Meinhof and Stora Enso are losing money at an alarming rate. We believe that this is because the market is flooded with competition causing a surplus that is driving prices down and costs up. Other issue we found to be a problem were passed legislation restricting foreign firms ability to purchase land and consume natural resources.
Through this feasibility study of the Czech Republic as a location for international expansion we have concluded that the need for expansion to continue to growth and prosperity is there, but this is not the proper location to start the campaign. In the continued search for expansion opportunities, the following key attributes must be met to establish manufacturing or marketing operations in a foreign country. * Accessibility to rail systems and/or commercial use waterways. To maintain a competitive edge Morning Woods will need access to efficient low cost methods of shipping, capable of facilitating the transportation of large quantities of heavy and bulky materials and finish goods inherent of the lumber industry. * Favorable Legislation on import/exports,