QUESTION ONE The long term productivity in a manufacturing enterprise is dependent upon several factors including the location of the facility. Nsansa Milling, a company engaged in the production and distribution of flour, mealie meal and various cereal products located in Lusaka, Zambia is considering expanding the business into some of the neighbouring countries. There is a choice between Lubumbashi in the Democratic Republic of Congo and Mbeya in Tanzania. (a) A team carrying out a feasibility study has come up with the following information on the two sites: Factors weight Kenya Zambia Labour Costs 0.25 70 60 Transport Costs 0.05 50 60 Utilities 0.10 85 80 Tax Structure 0.39 75 70 Education 0.21 60 70 Use the factor rating method to recommend the location the organization should choose for its expansions. (b) Apart from the external factors recognized by the consulting team above, discuss five internal factors that would affect the productivity of the organization. (c) The company produces a variety of products. Some of the products that are popular in Lusaka may not be as popular in Mbeya or Lubumbashi. Discuss how the company can go about determining which products to start with or focus on in the different locations?
QUESTION ONE
The long term productivity in a manufacturing enterprise is dependent upon several factors including the location of the facility. Nsansa Milling, a company engaged in the production and distribution of flour, mealie meal and various cereal products located in Lusaka, Zambia is considering expanding the business into some of the neighbouring countries. There is a choice between Lubumbashi in the Democratic Republic of Congo and Mbeya in Tanzania.
(a) A team carrying out a feasibility study has come up with the following information on the two sites:
Factors weight Kenya Zambia
Labour Costs 0.25 70 60
Transport Costs 0.05 50 60
Utilities 0.10 85 80
Tax Structure 0.39 75 70
Education 0.21 60 70
Use the factor rating method to recommend the location the organization should choose for its expansions.
(b) Apart from the external factors recognized by the consulting team above, discuss five internal factors that would affect the productivity of the organization.
(c) The company produces a variety of products. Some of the products that are popular in Lusaka may not be as popular in Mbeya or Lubumbashi. Discuss how the company can go about determining which products to start with or focus on in the different locations?
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