NEED FEEDBACK AND THOUGHTS ON MY DISCUSSION ANSWER:

QUESTION:

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Discussion $8$

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You are the owner of a successful, privately owned textile manufacturing company located in the United States. Over the past few years you have built a substantial customer base in Japan. Given your success in the Japanese market, you are interested in expanding your manufacturing operation to Japan. Answer the following questions using what you have learned from this week$$s readings:

Discuss the four elements you would consider when developing a production strategy in Japan.

In exploring ways in which you could finance your expansion, you have discovered several options. Explain the options available to you for financing your expansion and determine which option$($s$)$ might be best suited to your organization$$s needs.

MY ANSWER:

The $4$ elements of developing a production strategy are:

$1.$ production capacity

$2.$ facility location

$3.$ production processes

$4.$ facility layout

If my products are so successful in Japan, I would determine that I would need to expand production by building a bigger facility or moving to a larger existing facility.

Most likely Japanese real estate is too competitive and expensive, so it would be expected I would move production to a lower$-$wage country to keep my products competitively priced. $($Wild$,2022,$ p$\mathrm{.}364).$ I would choose a country outside of Japan but still relatively close to shorten the distance and time it takes for customers to receive their orders. I think I would choose the Philippines if I need to move my production to a different country. The average monthly salary of a Japanese citizen is $$2172$ versus in the Philippines, their salary is $$364$ and the difference in the cost of living for one person in Japan and the Philippines is $$483.($Livingcost$,2024).$ My products would be made in part in the Philippines and the final product would be assembled in Japan.

A production strategy with the production process would be to use either standardization or adaptation. With standardization, I can mass produce a product for Japan$$s market which I can do in a larger facility. Or I can use adaptation where the production facility would be smaller and made for one national market. With adaptation, I can minimize any waste and offset production costs by keeping production small. My strategy would be to sell standardized products mass$-$produced in the Philippines. And in Japan is where I would these facilities to produce products with specialized designs, styles, and features.

In terms of production capacity, Japan is a small country so I would have to be mindful of how large I can make my manufacturing company. So I would likely not produce large quantities of product because I would not have the space for inventory, but instead, the facility would be used as a transitionary space from production to shipment.