Abstract :
When considering the cost and market potential, business case for relocation often looks very attractive and it is easy to get carried away with all the hype. However, companies often fail to take account of the significant risks associated with undertaking the transfer. Based on a large number of relocation projects into Eastern Europe, the Far East and South America, successful relocation projects require: (1) a robust implementation approach that has been tested in practice, (2) an awareness and understanding of the risks and a robust approach to managing them, and (3) the ability to anticipate and adapt along the way because things will go wrong. Our approach to undertaking relocation project follows these three distinct phases. Critical to successful relocation programme is understanding and managing risks. Some of the key learning and risks for factory relocations in Mexico are summarized in this paper.
