International relocation for Magnitogorsk Iron and Steel Works - Essay Example

Relocation Proposal BY YULIYA YOUR SCHOOL HERE January 4, 2007 Relocation Proposal Introduction Magnitogorsk Iron and Steel Works (MMK) is currently searching for viable international relocation sites for sustaining business outside of Russia. Initial research identified several potential locations, including Durham, North Carolina, Tucson, Arizona and Manchester, New Hampshire. Each of these potential locations maintained their own unique environmental, cultural and economic incentives which may have appealed to MMK objectives for profitability and sustained growth.

However, Manchester, New Hampshire maintains the best quality mix for relocation potential due to the positive business climate which exists in this region, making this the proposed relocation destination. The Incentives Manchester, New Hampshire is strategically located along several rivers, which will provide lowered logistical costs in relation to the physical transportation of materials. As a focus of supply chain management, which is categorized by the physical management and movement of raw materials, finished goods, and various parts needed to run the business (Nickels, McHugh & McHugh, 2005), the city’s proximity to shipbound distribution makes this ideal for managing materials and cost.

The company will be able to select transport on the Merrimack River, the Cohas Brook, and the Piscataquog River. Railroad access is also a viable alternative in the event that materials cannot be moved via waterways (ManchesterNH.gov). In addition, Manchester offers various properties suited for economic development, relocation assistance, financing and tax credits as economic incentives to assist revenue flow in the local region. Especially in difficult economic times, Manchester’s rather liberal assistance and incentive programs will aid in maintaining short-term profitability by avoiding high relocation costs.

Quality of life is also evident in Manchester, which will be a positive motivational aspect, from a lifestyle perspective, for any international expatriate employees who will be required to assist in developing the new American facility. As expatriate assignments are generally long-term (Mathis & Jackson, 2005), quality educational facilities are available for school-aged children as well as 900 acres of parks, playgrounds, swimming facilities, beaches, and ski regions (ManchesterNH.gov). For managers or employees willing to transfer from Russia to this newly-explored region, Manchester will provide a wide variety of leisure activities and cultural events which are well-designed to suit virtually any lifestyle preference.

All of these incentives greatly serve to enhance future objectives for Magnitogorsk, offering the business a wide variety of improvement and expansion opportunities, as well as providing the local community of Manchester with new employment opportunities. In addition, the existence of MMK in Manchester will provide local citizens with new industrial products which serve to enhance the community and lifestyle by providing quality steel and iron products for a variety of building needs. Demographic Analysis The pie chart below represents the demographic mix of cultures which exists in Manchester today, representing a somewhat diverse blend of communities and belief systems.

References: Nickels, W., McHugh, J. & McHugh, S. (2005). Understanding Business. 7th ed. McGraw Hill Irwin: 476-478. Manchester, New Hampshire Government. (2008). “Area Profile”. Retrieved 03 January 2008 from http://www.manchesternh.gov/Leisure/areaprofile.html Mathis, R. & Jackson, J. (2005). Human Resource Management. 10th ed. Thomson South- Western.