Strategic decision making and planning

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Strategic decision making and planning

By | October 2010
Page 1 of 6
When a company decided to choice a geographical location for their new operations or services, the company not only has to look at the physical location and their raw material sources. It’s also have to look at all the factors that affect the strategic specialize resources cost like government incentives, skilled human resources, technology infrastructure, transportation network, market-oriented economic growth, and quality of staff life. Other majors factors like stable financial and banking system, technology innovation will also be evaluate. We are going to look into each factor on how it’s affect the decision of setting-up operations and services in Malaysia for two global companies: Dell and IKEA operations.

Based on the Malaysia Investment Development Authority, the country has created a technology incentive with competitive edge known as Malaysia Multimedia Super Corridor for information and communication technology sector. This special competitive edge has prompted other technology companies like Dell and others to invest and setup their manufacturing operations in Malaysia. With this investment corridor and Malaysia’s strong economic performance, it’s transformed the economy from a focus on commodity production to one of the world’s largest producers of electronic and electrical products (Loundes, 2005)

Dell (M) Sdn Bhd has started operating their operations in Malaysia through their direct sales services of computers and servers first but evolved to computer assembly manufacturing which opened in 1996 in one of the Malaysia Super Corridor. In 2001, Dell opens the Asia Pacific Customer Centre2 (APCC2) which is 5 times the size of Dell’s existing factory and has double the capacity.

Physical location of the operating operation or service is the main factor that effects the decision that Dell took. Malaysia is located at the heart of Asia’s fastest-growing markets with state-of-the art highway & ports infrastructure and is governed by polices and...