possible locations where Electrocorp can move its operations

possible locations where Electrocorp can move its operations

Introduction

Today the recent and emerging technologies are ushering in new and improved methods of doing things in organizations (Hong, 2017). However, these new technologies come at a considerable cost in terms of time and resources. Due to the excessive use of these technologies, organizations have found themselves in the middle of skyrocketing operational costs which affects the profitability of the organization in the long run.

Additionally, stringent environmental regulations in countries have made it hard for organizations dealing with harmful substances and gadgets to operate smoothly. Due to the above factors, many organizations have decided to move their operations to less developed countries since there are lesser environmental restrictions and the labour costs are significantly low. However, these developing countries have their demerits too. The following is an analysis of the possible locations where Electrocorp can move its operations.

Mexico

This is the first location where the organization can move its operations (Musalo, 2019). According to analysis, Mexico can be a perfect place where Electrocorp can move its plant. This is because of the following factors. First is that the labour costs in Mexico are lower compared to the United States of America. In Mexico, the organization can get workers who can be paid as little as $3 per day.

Additionally, environmental restrictions and regulations are not as tight as they are in the United States. In Mexico, workers can work in harsh conditions. However, the only problem that the organization is likely to face is publicity. Recently members of the public and other stakeholders have been raising concerns about increased congenital disabilities.

These defects are as a result of the highly carcinogenic solvents used by the organizations to clean the computer chips they manufacture. It is therefore vital for the organization to come up with an excellent method of depositing their waste and taking care of their workers if they want to operate in Mexico successfully.

Philippines

This is the second possible location where Electrocorp can relocate its plant (Musalo, 2019). According to the economic and environmental analysis done, it is far much better compared to Mexico and the United States but has its challenges too. In the Philippines, the labour costs are as low as $1 per day. Additionally, the organization can have workers who are below the age of 16 years who can be paid even less. The environmental regulations are not as restrictive as those in the United States too. However, the major problem in the Philippines that the organization can face is that of hiring under ages and paying them less. This can be perceived as child labour bearing in mind that these children will be dealing with highly carcinogenic solvents that can affect their health in the long run.

South Africa

This is the third location where the organization can relocate its plant. However, in South Africa, the labour costs are $10 per day (Musalo, 2019). The environmental regulations stipulate the organizations dealing with carcinogenic solvents must use equipment to reduce the toxicity of chemicals before disposing of them. Another critical issue in South Africa is that there exists a strong labour union which means that there is a possibility of future demand for increased wages and benefits. It is, therefore, tough for the organization to move to South Africa since the operational costs are likely to go high when they move there.

Conclusion

In a nutshell, the organization can only move to Mexico, bearing in mind that it is closer to the United States. Additionally, the labour costs and environmental restrictions in Mexico are favourable and lesser risky compared to the Philippines and South Africa.