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Running head: LOCATION DECISION1Location DecisionMichael LucasEmbry-Riddle Aeronautical UniversityManagement of Production and OperationsMGMT 420Constantine KoursarisNovember 23, 2019
LOCATION DECISION2Location DecisionMitsubishi Electrical is an international electronics company. Looking to expand globally,Singapore is the best location for Mitsubishi Electronics to expand. Mitsubishi is a leading manufacturer producing electronics ranging from home electronics to satellite systems (Mitsubishi Electronics, n.d.). Mitsubishi is headquartered out of Tokyo Japan and has been around since 1921. The decision to expand into Singapore involved seven major factors including cost, labor productivity, exchange rates, politics, proximity to competitors, proximity to suppliers, and proximity to markets. The authors of Operations Management: Sustainability and Supply Chain Management show in Table 8.1 that Singapore was ranked as the number two in competitiveness in the world in a survey of 13,000 business executives (Munson, Render, & Heizer, 2017). There are not many other better opportunities in the world to expand, especially when it is the electronics production we are expanding.CostsCosts for locating to Singapore are very favorable to expand into Singapore. Both tangible and intangible costs with the expansion are favorable. Singapore is known to be a wealthmanagement center in the Asian region and is very attractive for investors to invest (Bada, 2018).Singapore is an island nation with no resources available for raw materials and must import the raw materials required for production ("Guidemesingapore," n.d.). The costs of transportation, import, and export are the only disadvantages to the cost of operating in Singapore as evident by the lack of available resources and being located on an island.