Write a 5 pages paper on global operations management of precision parts.
Currently, the company employs 85 people at its Wagga Wagga location (Regional Development Division, n.d). This section deals with the environmental scanning of the company with regard to its expansion strategy. Thus before conducting the environmental scanning it is necessary to point out the country in which Precision would expand. Therefore the market chosen is Germany because of the following conditions. Political, social, and economic stability provides a solid base for any company to start up a new plant in a new environment.
Germany judiciary and its civil services allow companies to set up industries at an ease. The judiciary systems are highly professional. Agreements based on contracts are secured and intellectual properties are protected with high concern in Germany. Germany has one of the highest levels of education, economic productivity, and technological development. The economic condition of Germany is stable and its economy has been regarded as the fifth largest in terms of purchasing power parity. It is one of the leading exporters of vehicles, machinery, and chemicals and benefits from a highly skilled labor force.
In 2010 the GDP of Germany was 3.6% and was expected to grow by 2.6% in the current fiscal year (US Department of States, 2011). Germany hosts the largest OEM plants in Europe enabling the suppliers in diversification and access to nine different OEMs. With an excellent high skilled labor force, Germany has been able to achieve success in the automotive industry and thus creating more opportunities for suppliers to invest in the country. It has been a leader in technology ranging from machines, electronics to buildings. According to the World Economic Forum, Germany has been ranked number one in terms of infrastructure and logistics (Invest in Germany, n.d, p.4).