Solar Flare Inc., a mythical manufacturer of solar panels, is planning to build a new facility in

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Solar Flare Inc., a mythical manufacturer of solar panels, is planning to build a new facility in a South American country. Bill Johnson, the manager responsible for this decision, has identified Argentina, Brazil, and Chile as the potential alternatives for the new location. The critical success factors, their relative importance, and the scores for these countries based on the factors are shown in the following table.

Score (on a 10-point scale) Factor Social and Cultural Factors Availability of Technology Political and Legal Issues Ski


1. In which country should Johnson choose to locate the facility?

2. After making the decision, Johnson learned that civil unrest and a political coup could occur in Chile. Consequently, the score for Chile€™s political€“legal factor was changed to 3. Will the change affect Johnson€™s decision?

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Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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