Question $2(30$ marks$)$

a$.$ In the era of globalization today, many organizations expand their operations into

other countries to sustain their global competitiveness. Some of key success

factors that need to be considered for selecting the right country include culture,

labor talent, infrastructure and exchange rates. Elaborate on how each of these

factors can impact company's objective to achieve competitive advantage.

$[12$ marks$]$

b$.$ An electronics company is considering three alternative locations for a new

factory for manufacturing power bank. Since the market is nationwide, revenue

is assumed the same regardless of plant location. The estimated annual fixed

and variable costs for each site is shown in TABLE Q$2.$

TABLE Q$2$

i$.$ Plot the Crossover chart in the graph paper for locational cost$-$volume

$($break$-$even$)$ analysis. Identify the range of output for which each location

provides the lowest total cost.

$[14$ marks$]$

ii$.$ If demand is expected to be $130,000$ units of power bank per year,

recommend the preferred location for the factory. Justify.