The pharmaceutical industry went through many changes in the 1990s
and the early 21st century. The North American Free Trade Agreement
(NAFTA) made a significant impact on Canadian manufacturing. The trade
barriers were removed, and the company began to question whether it was
cost-effective to keep manufacturing products in Canada with higher
labor costs and much higher taxes. In addition, the 245 acres of land at
which the facility was located was near a prime residential area and
within a mile of Lake Ontario just outside of Toronto. The land alone
was worth over $7,000,000.
Analyze whether or not the company should continue manufacturing in
Canada or if it should move back to the United States. This requires
research into transportation cost estimates from Colorado to Toronto. It
also requires analyzing the impact on company image by shutting down a
facility in Canada.
Draft your recommendation to management.
Include the following with your recommendation:
- financial
- nonfinancial
Create a 12-month based action plan
Deliverable Length: 1000-1500
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