Are We Ready for an Automotive Plant Harvard Case Solution & Analysis

In McAllen, Texas, and its partners are working to attract automobile assembly plant in the region for over fifteen years. Under the North American Free Trade Agreement (NAFTA) status, the region benefits from both sides of the Mexican-American border. Even during the economic downturn in 2007 and 2008, McAllen experienced low unemployment rate compared to other cities in the United States. One of the main reasons was its close proximity and economic ties with Mexico. The lower cost of labor, the right to work state and the proximity to Mexico has been one of the strengths of the region, while the high illiteracy rate, a limited number of suppliers to the automotive and small forces were among his weaknesses. Based on publicly available data and a set of methods of assessment scores, McAllen, compared with other potential sites. The case deals with a wide range of questions about the factors in the choice of the automotive industry. Learning objectives include: 1) examine the major factors for the site location of different industries, including the automotive industry 2) to evaluate potential sites based on quantitative methods, such as the relative total score of 3) to understand the other qualitative factors that may influence the decision. The fact is suitable for courses and seminars on operations, supply chain management, production management, project management, decision science and management science. Exhibits may be omitted for graduate and executive levels, requiring students to research and come up with their own factors. "Hide
at Chia Yi-Wu, Y. Ju Yung Source: Richard Ivey School of Business Foundation 15 pages. Publication Date: January 26, 2010. Prod. #: 909D14-PDF-ENG

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