1) Introduction: With the continuous growth in the economies of European countries and USA, we expect the demand of our clients will have considerable increase in the coming several years. In view of the high cost of land and wage of labor in H.K., we planned to construct a new factory in China.
2) Methodology: 2.1) We formed a team to assess several construction sites in China for the new factory.
2.2) The following factors were considered in choosing the suitable location.
a) Price of land.
b) Supporting infrastructure and utilities which include transportation system, electricity, water supply and telecommunication facilities.
c) Supply of skilled labor.
3) Findings: Based on the above criteria, we have rated three locations as follows:- 3.1) Location A: The price of land is the highest among all the locations.
3.2) Location B: The price of land is low and the supporting infrastructure is quite well.
However, there is a lack of supply of skilled labor.
3.3) Location C: This location was found to meet all the criteria. Therefore, this is the best choice for the new factory.
4) Conclusion: Based on the above findings, we selected location C as the site of our new factory.
5) Recommendation: We need to talk with the Chinese Government about the construction process and other related issues. We should also employ a lawyer in China to help us handle all the legal matters about this project.