Cuntry Evaluation and Selection
Ford Fotor Company In 1974 the Northern Petrochemical Company (NPC), a subsidiary of Northern National Gas (now named Internorth), decided to get into polypropylene production. The decision was based on an analysis of NPC’s production capabilities and on a forecast of future market demand. From a production standpoint, NPC was already making propylene, which...
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Choosing Geographic Sites in choosing geographic There are two interrelated questions concerning geographic areas of emphasises, a company must de- sis: (i) which markets should be served? (2) Where should production be Clde, located to serve these markets? Frequently the answer to these two questions • Where to sell • where to produce De...
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SCANNING FOR ALTERNATIVES In the opening case, Ford used scanning techniques so that decision makers could perform a much more detailed analysis among a manageable number of geographic alternatives that looked most promising. This is a useful exercise because otherwise a company might consider too few or too many possibilities. Risk of Overlooking Opportunities...
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INFLUENTIAL VARIABLES The following discussion highlights the factors mentioned most often as influencing where sales and production emphasis will be placed. Some of the variables are more important for the sales-allocation decision; others are more important for the production-location decision. Some, of course, affect both decisions, especially when foreign investment is necessary for serving...
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RETURN ON INVESTMENT: COUNTRY COMPARISON CONSIDERATIONS Is a projected rate of return of 9 percent in Nigeria the same as a 9 percent rate in France? Should return on investment be calculated on the basis of the entire earnings of a foreign subsidiary or just on the earnings that can be remitted to the...
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