part 1 assignment

Ethical Considerations pp. 261-2

Submit a case analysis paper to address the questions posed on page 262. Show a contrast where governments differ in their approach.

Writing Requirements

• APA format, 5-8 pages in length (excluding cover page, abstract, and reference list)

part 2 make comment

1.In order to sell more of bicycles at a lower prices, Z-Mart should understand and comply with the customs and tariff laws of the countries like France, Taiwan, and Philippines in which it plans to sell its products due to several reasons. Firstly, the enforcement of penalties for violating regulations can be severe to the extent to which they cannot sell the products anymore. In addition, it is important to acquire knowledge of customs because it affects the supply chain and operational structure of the company. Besides understanding the customs, Z-Mart should conduct a market research to analze the minimum local price of the bicycles so that the products could be sold in local areas.

2.Factors to be taken into consideration in determining whether to assemble the finished bicycles in the United States, Taiwan, or the Philippines.

Assembling is an important production activity and a cost head. There are several factors that need to be considered for the determination of location for assembling the finished bicycles.

The first and the foremost decision is regarding whether to make or buy – whether to make a new factory for assembly or purchase an existing factory. The decision will be influenced by the analysis of all variable and fixed costs and calculation of the break-even point.

If the decision is to make then all the 3 locations must be compared in terms of the following parameters in order to decide which one of these is most efficient. These parameters are

1. Overhead Cost
2. Production Cost
3. Supplier Cost
4. Quality of Suppliers
5. Logistic costs associated with transporting and selling bicycles in various markets such as Europe and Americas
6. Time required for shipping products from factory to the outlets
7. Customs
8. Taxes

Labor and other costs are generally in lesser developed countries such as Taiwan and Philippines (Remo, 2016) compared to those in the United States and hence it will make more sense to assemble the products in those countries. It is, therefore, necessary that all the pertinent factors are taken into consideration and detailed analysis be performed in order to arrive at the correct decision.