A Case Study: Polaris Industries Inc.
In 2010, Suresh Krishna, vice president of operations at Polaris’ Industries had to decide if the company should continue manufacturing their side-by-side all-terrain vehicles in their Roseau, MN plant or move the operations to either Monterrey, Mexico or the eastern region of China (Schroeder & Goldstein, 2017). The case study outlines several qualitative and quantitative factors that needed to be considered.
Factors that management should take into consideration when relocating a manufacturing company is they need to make sure it would be profitable, this includes the initial costs connected to relocating which include, shipping costs, future growth, and start-up costs. They also must consider how moving the facility will affect the customers and employees displeased, and the quality of the product may drop below what the customers are used to (Schroeder & Goldstein, 2017). The layout of the building and the land so they can expand in the future at the same site. Managers should also consider how easy it is to get in and out of the business parking lot, that there is adequate
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Reputation is essential for any company and Polaris was no different, making reputation a significant qualitative factor for Polaris to consider before making a final decision. The fact that all of Polaris’ products were “Made in America” was an integral part of their brand and one of the things customers liked about their products. Customers might have been reluctant to purchase products made in a foreign country that was notorious for cheaply made products, which would allow a competitor, whose products were made in America, to lure those customers