Please answer the question, don\'t use hand writting, it is hard to read. Maple

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Please answer the question, don't use hand writting, it is hard to read.

Maple Leaf Shoes Ltd. International Expansion Maple Leaf Shoes Ltd. is a medium-sized manufacturer of shoes located in Wilmington, Ontario. It was started in 1969 and currently employs about 400 persons in its Wilmington plant and some 380 more in offices and warehouses throughout Canada. A conglomerate bought the firm from its founder in 1985. Eventually, control of the company passed to Robert Clark. Clark is both the CEO of the company and its key shareholder Maple Leaf is in a difficult market situation. Most shoes sold in Canada are now manufactured abroad to take advantage of lower labour rates offshore. Maple Leaf has tried various strategies to compete against foreign products. The company has tried to make its manufacturing more efficient by upgrading its technology. It has shifted some of its labour from full-time unionized employees to part-time contract employees. It has formalized its systems to make them more cost-effective. It has even moved to computer-aided techniques to reduce the number of employees needed in the manufacturing process. About 70 percent of the non-management employees in the firm are unionized. Jane Reynolds the company's HR manager, has worked for Maple Leaf Shoes for several years. Jane is aware that Maple Leaf faces ever-increasing foreign competition. The company's profit margins and market share have declined for the last five years. Jane has worked closely with Bob Smith, the Operations Manager, to find ways to increase productivity of the labour force. They have had some success with their programs but, nonetheless, the competitive position of the company has continued to erode Robert Clark has been considering what kinds of strategies the company can pursue to deal with its competitive situation. A month ago, he received a report from a consulting firm that analyzed various alternatives including opening a plant in Southeast Asia or Mexico. Clark has had several meetings with Bob Smith and Tim McDonald, the CFO, to consider the findings in the report. Although the consultant's work was supposed to be performed on a confidential basis, rumours of the report have spread through the company. As a result, employees have expressed considerable anxiety. Today, Jane has been asked to join Clark, Smith, and McDonald to discuss the future of the business. Jane has reasonably good relationships with Clark and Smith, but over the years, she has had some difficulties with McDonald. She knows McDonald tends to see her as not always being strategic and focusing on the bottom line. Below is the dialogue that transpired at this meeting Robert Clark: "Jane, you know we have been considering opening a plant outside of Canada for economic reasons. First of all, our labour costs are high. If we can't significantly reduce our labour costs, there is a good chance the company won't survive. Second, our market in Canada is not growing very fast. If we can open a plant in a market with stronger population growth, we may be able to benefit." Jane: "I understand that. Most of our competition no longer makes shoes in Canada."

Explanation / Answer

1. Some of the challenges Maple Leaf might face if it were to open a plant in Mexico are:

Specific issues that Jane can include in her report are:

2. The criteria for this recommendation should be:

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