Proposed Site for Aiai in Europe

In: Business and Management

Submitted By jniss2
Words 991
Pages 4
Proposed Site for AIAI in Europe
John
MNGT545
Case S7.1
04/07/2015

PROPOSED SITE FOR AIAI IN EUROPE American International Automotive Industries (AIAI) manufactures auto and truck engines, transmissions, and chassis parts for manufacturers and repair companies in the United States, South America, Canada, Mexico, Asia, and Europe. AIAI currently ships its parts into Hamburg and Gdansk to be able to reach customers throughout Europe. Since the company is growing and complaints have been arising about late deliveries, American International Automotive Industries is looking for a new distribution site to help in Europe. Before a site can be chosen, the company must first look into what factors will best keep costs down as well as make quicker deliveries with fewer damaged products. With American International Automotive Industries’ European headquarters being in Hamburg, the vice-president for construction and development has provided the company with five potential sites to choose from. These sites are Dresden, Lodz, Hamburg, Gdansk, and Frankurt. AIAI also needs to keep in mind where their seven main customers are located. These customers are located in Vienna, Leipzig, Budapest, Prague, Krakow, Munich, and Frankfurt. Understanding that these customers are important to AIAI and those quicker deliveries can make happier customers. American International Automotive Industries needs to come up with a strategic focus in order to maximize the benefit of the chosen location. Some key factors that AIAI should focus on its proximity to its customers, what distribution site will be the most cost efficient location in regards to shipping its products to the customer? Another key factor is time, how long it would take for the customer to receive their product after ordering it? Are there are trade restrictions or bans between countries?…...

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