Mexico Distribution Center for the Moose's Cabin

Only available on StudyMode
  • Download(s) : 159
  • Published : February 17, 2013
Open Document
Text Preview
Date: October 28, 2011
To: Abraham Lincoln, Chief Executive Officer
Subject:Mexico Distribution Center for The Moose’s Cabin
Opening a distribution center in Mexico will provide The Moose’s Cabin with opportunities to expand our client base. The current location in the Northeastern United States experiences extreme winter weather conditions, causing slower winter order fulfillment. “Manufacturers who want to take advantage of lower fixed rates and labor costs see the benefits of moving all or portions of their assembly operations to Mexico.” (Group Sion, n.d.) Strong trade routes due to the geography and topography of the country offer both maritime and ground transportation efficiencies. Adding a location that has a warmer climate will allow greater flexibility during those months. “Mexico has a tropical climate with distinct rainy and dry seasons. Temperatures in the coastal regions range from 21° C to 27° C.” (Library of Congress, 2008) The physical local for our new expansion should stay on in the Central or Western larger cities. The hurricane season on the Gulf of Mexico coast may prohibit benefits that the westerly and central places will offer. The benefits and opportunities to expand The Moose’s Cabin sending twenty-five hardworking employees and myself will reap great rewards. The company’s performance trends during the last few fiscal years reveal that now is the time economically to begin expanding our products to other regions of the world. Home décor products for median income households offered online and in retail, outlets do not have close proximity to the proposed location in Mexico. Economics

The economic structure in Mexico opened an environment for businesses to open new satellite locations to take advantage of the land and labor costs. The United States entered into the North American Free Trade Agreement with Mexico. “The favorable terms of trade makes the Mexico import and export a profitable venture both for the domestic and...
tracking img