Own manufacture
Teslo could build its own manufacturing facility in the US or abroad.
US
+ Market car as American quality (higher perceived quality)
+ Low transport costs
+ Close proximity to suppliers
+ Possibility to get financial aid by American government
- Higher labour costs
- Actual quality may be lower (lack of skilled workers in US)
- Regulation of US government may be stricter
Abroad
+ Lower labor costs
+ Actual quality may be higher (lack of skilled workers in US)
+ Less strict regulation
- Higher transport costs
- Less proximity to suppliers (if from the US)
- Possible political issues, uncertainty about political stability
(depending on the country)
- Public reaction might be negative (production moved abroad)
- Perceived quality might be low (“Made in China”)
Outsourced manufacturing
Teslo could outsource the production to another company.
Besides the already mentioned Pros and Cons above, there are additional things to keep in mind.
US
+ Probably better/easier communication due to close proximity
+ Similar business culture
+ Easier on-time delivery (just in time)
+ Possible already established business contacts
- More difficult to set up the supply chain (spread over the country)
Abroad
+ Better supply chain (big factory regions in China)
- More difficult to communicate (especially face-to-face)
- Possible different business culture
- More complicated to deliver on time (just in time)
This case is made to be interviewer-led. Therefore the interviewer should guide the interviewee through the interview.
The questions in the big boxes should be read out and shared with the candidate.