Essay on Project Management: Decision to Relocate

The primary goal of any organization is to make a profit, and indeed an appropriate location of the organization is integral in fostering its continued growth and profitability. Based on the presented facts in the case study, it is evident that the factorys location in the US, as well as the lack of competitiveness in the international market, is pushing the company to bankruptcy due to the poor results. Further, the old factory located in the US will require new renovations. Once renovated the factory will not be as effective and efficient like any other new factory planned for in new location. Through this, the company gains an opportunity of expanding and taking up the opportunities presented by global expansion.

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Comparing Ireland and Canada which are the main options for the creation of the new factory, Ireland is a much better option for the location of the factory. Two main reasons make Ireland the best place for the new factory. The first reason is that Ireland has relatively low corporate taxation rates of approximately 15%, unlike Canada which it is at 20% and United States 35%. This means that if the company relocates the factory to Ireland, it will reduce its tax expenditure significantly. This will be ideal in attaining a strong financial performance. The costs that could have otherwise been spent to pay the extra tax will be used in financing new projects and supporting its operations. The second reason is that the location offers higher net present value of approximately $35 million. This is much higher as compared to Canadas $10 million. This means that Ireland will provide higher returns for the company than the other locations thus the decision to locate the factory there.

Various stakeholders including the companys senior executives, shareholders, project managers, suppliers, team members, potential clients in the destination country as well as Ireland tax and regulation officials must be consulted for a successful relocation. According to Binder (2016) involving senior executives and project managers is ideal in helping to ensure that the project gets the highest attention as well as the needed support to excel. Similarly, by working with project managers is integral as they will be able to share ideas on important issues needed for a successful relocation since they have vast experience with such activities (Kerzner, 2013). Moreover, involving senior executives such as senior IT specialist is ideal in ensuring that the company understands how information will be passed from the foreign factory to the headquarters and also from the headquarters to the foreign factory.

Including the organizational shareholders is of the essence since they have some ownership in the company. This means that a decision that will impact on their return should be made with their knowledge. Also, suppliers need to be informed of such a decision because they may have an interest in the company and also have long term contracts. This may hinder any obstacle that may arise when the organization is relocated to a new place. Furthermore, the engagement of the team members which are the group of the employees to be arraigned in the new company will be of the essence in ensuring that they work as a unit to perform well in the new location. However, it is of an essence to note that not all employees will be willing to relocate to the new place. Therefore, engaging them in the process of relocating the organization will help ease things as they will feel the support of the company. Additionally, the company should engage the services of the customs authorities in Ireland including tax collectors and other regulators in the business industry to understand the specific business laws that may impact them before they finally relocate to the new place. Another factor to put into consideration before relocating to Ireland will be the customer characteristics. This helps to give the insight of how the customers in the new location will be handled.

My decision to involve the stakeholders in relocates to Ireland support reasonable stewardship and integrity in the sense that the stakeholders need maximum benefit with the relationship to the company. They act as benchmarks in which firms values, behavior, and activities are assessed. Because there is no maximum benefit at the current location in the United States, there is no need to assess new opportunities that can give in more value. The decision also is in support of stewardship role needed in the financial management of safeguarding the shareholder funds and investing it to generate maximum returns for them (Balmer, 2017). The decision also supports the stewardship and integrity role needed of financial managers of ensuring that the company creates a win-win situation for all stakeholders that rely on its goods and services.

In conclusion, relocating the factory in Ireland offers more benefits regarding lower taxes and higher net present value for the company. Senior organization executives, team members, project managers, suppliers, shareholders, tax and regulatory officials of destination country and clients are the main stakeholders to include in the decision. Furthermore, the decision supports the stewardship integrity and role in the financial management of ensuring that the resources are used in a clear way so as to be advantageous to every stakeholder.

References

Balmer, J. M. (2017). Corporate Brand Orientation: What Is It? What of It?. In Advances in Corporate Branding (pp. 175-202). Palgrave Macmillan UK.

Binder, J. (2016). Global Project Management: Communication, Collaboration and Management.

Kerzner, H. (2013). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.