How to do a successful relocation?

Résumé du document

"The economic relocation is the activity transfer, funds, employees, in a foreign country which offer a competitive advantage.? (Wikipedia)
We chose this definition because for us it takes the notions of:
? Transfer ( which includes the notion of moving from the domestic country to a foreign one)
? Advantage (the reason of a delocalisation, the perpetual research of the difference as compared to the competitors)
This phenomenon exists for ages, but it actually began in the 1970s where manufacturing industries from Europe and USA relocated there premises principally in Asia. A study realized in the 1990s showed that 6.5 Million employment from industrialized countries moved to the Asian countries. Two factors influenced this figures and they are robotization and tertiary sectorization.

Extraits

[...] For a car production, the electric part of wiring requests approximately 6 hours. The labour is thus very important for this field. This is the most expensive part of the car's construction. Regarding this product, the labour represents 40% of the added value. In order to fall the cost, the wage cost had to be reduce. Before its relocation, Siemens produced it in Portugal. They decided to move in another country. For several reasons (political stability, good labour qualification, labour already trained . [...]

[...] It is the compromise between several factors. In fact, with the globalisation, a lot of countries are very attractive, regarding to the labour cost point of view. For example, between France and China the average of salary is divided by ten. But however, relocating in these countries can also bring some disadvantages, if some criteria are neglected. As we can see on the chart, the salaries are not the only reason to influence the final cost. The labour productivity, the weekly work time and the income tax are also important factors which can modify the working cost. [...]

[...] We also notice that the income tax is not the same in all the countries. And some of them are very attractive. It is a factor which justifies the companies has to be established abroad. France has the strongest European rate and the French companies are motivated to go in the east of Europe where the rates are definitely lower. With 10% of benefit, an investment of 1000 euros defers only 64 euros in France. In Estonia or in Switzerland, this same investment would bring back 100euros, that is to say 50% more. [...]

[...] In this sector relocation can cost a lot of money. This loss can be direct (like move the furniture, form the staff or buy new material as computers . ) or hidden (like the turnover of the employees, intern politics . So companies have to be really careful Going in other countries only because the salary or the tax is cheaper than in there own country is not always a solution. Quality have to be the same to avoid a lost of customers Brand image The brand image is the identity of the company, a lot of company (in luxury sector or not) base there communication and promotion on this brand image. [...]

[...] Toyota wanted to develop its European relocation after its 1rst implantation in United Kingdom. need to produce where the market take place”. The Japanese company was looking for a major country, with the euro, and where the automobile culture would have allowed a fast and efficient implantation. Its relocation in the North of France, in Valenciennes, wasn't chosen aimlessly. We can easily understand that the motivation of the (now) world first car manufacturer wasn't the decrease on workforce salary. The fact that Toyota has preferred the French site rather than a Rumanian one, even if salaries are divided by 8 proves that the Nippon wanted to build a qualitative factory, able to progress quickly in the Continent”. [...]