Positioning Manufacturing Plants Away from US States Essay

Positioning Manufacturing Plants Away from US States - Essay cause4 Discussion. 6 Conclusion 10 References 11 Abstract Several states in America, specifically the state of California, practice strict environmental compliance policies that become a burden to most manufacturing companies. The be attributed to the improvement of environmental management and production process are very high, adding up the labor cost in the US. This constitution case provide explore the complexities of the given scenario and examine the possible management strategies by functioning as the companys CEO. The causes and reason why American companies move their manufacturing operations to an onshore location will be determined, as wholesome as its implication in the American incline force and community. Product liability will as well be the foundation of the discussion, focusing on the lumber of the products to reduce product recalls and product liability lawsuits. Methods in improving the producti on process will also be tackled. ... This aspect is known as product liability. Heizer and Render (2011), the authors of the Operations Management book, describe this tint implication as a legislation that is implied to brass sections that . . . design, produce or distribute faulty goods and services. The organization is held liable to any form of damages or injuries that may be incurred with the use of faulty products. gibe to Polinsky and Shavell (2010), thousands of product liability cases are filed each year in different states in the US, as well as in federal courts. These cases include class or mass tort actions that involve thousands or millions of individuals as plaintiffs (Polinsky & Shavell, 2010). Product liability suits attract the attention of the media, especially in cases where the product being sued is a widely sold commodity that can affect a large number of consumers. This situation will also be detrimental to the company since it will create doubts from consume rs and result to an abrupt decrease in product sales. In 1982, the market share of Tylenol greatly fell from 35% to 5% later on incidents of death associated with ingestion of Tylenol contaminated capsules. Audi car sales were also affected during the mid-80s when reports spread that the locomote has a risk of suddenly accelerating which can cause accidents (Polinsky & Shavell, 2010). Significant effects of product liability and the strategy of outsourcing the production of goods and services will be discussed in this paper by analyzing a given theme case. The case provides a scenario wherein a CEO is faced with a challenge to suppress the effects of a product liability case associated with the allegation that one of their manufacturing plants had been involved in the improper