Magnitogorsk Iron and Steel Works and Manchester, New Hampshire - Essay Example

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 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.

List of Local and Governmental Incentives
All of the following incentives are available at (www.manchesternh.gov):
• The provision of demographic and marketing information – This would include elements of consumer behavior and ethnic/cultural differences to assist in creating workable marketing strategies to increase profitability.

• The provision of regulatory assistance – This includes assistance in understanding the practical application of rules and laws which are mandated by Manchester to provide information on how best to structure the business to satisfy legal expectations. This could potentially prevent any future liability on behalf of MMK.
• The provision of various loans – Manchester wants to draw business to its region, thus offering various loans makes the environment more suitable in the event of having to borrow additional capital for improvements to the company.

• The provision of technical assistance – This will help the company to understand how best to incorporate various technologies to make the company more adaptable and flexible to changing market demands.
Quality of Life

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.

Transportation
Manchester, New Hampshire is strategically located along several rivers, which will provide lowered logistical costs in relation to the physical transportation of materials. Supply chain management 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 costs. 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 to all of the aforementioned, access to the Manchester airport is being opened by the ongoing construction of the Manchester Airport Access Road, scheduled for completion in 2008. Manchester sites the outcomes of the project will include “safe, efficient, and convenient access” via a new connection to the FE Everett turnpike (Manchesternh.gov). For those employees who wish to maintain their social and familial connections to their Russian homeland, such access will prevent employees from air travel limitations due to underdeveloped airport access. Alex Vogt, project manager for the construction project, can be contacted for a firm completion date in 2008 by visiting the ManchesterNH website.

All of these incentives greatly serve to enhance future objectives for Magnitogorsk by offering the business a wide variety of improvement and expansion opportunities. In addition, they will provide the local community of Manchester with new employment opportunities. Further, 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 that exists in Manchester today, representing a somewhat diverse blend of communities and belief systems.

Exploring Housing Concerns
For those employees who are concerned about the receipt of adequate housing, Manchester has just finished completion of the construction of Manchester Place Apartments in downtown Manchester. These new apartments consist of 204 high-end residential suites and a 300-car garage (ManchesterNH.gov). For employees who prefer the ease and convenience of apartment living, this new project will appeal to those transferring employees who do not wish to secure long-term housing obligations in Manchester. Below is an illustration of the apartment complex:

Illustration 1: Street View of Manchester Place Apartments

(Source: http://www.manchesternh.gov/devprojects/bridgeelmapartments.html) Read More