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AT&T Consumer Products: Move to Mexico?
A 5 page paper based on
Harvard case 392-108 discussing the rationale for AT&T Consumer Products to locate an
offshore manufacturing facility in Mexico rather than in Malaysia or the US in the late
1980s. Manufacturing costs were far too high in the US in the era of such sweeping
change in American manufacturing, and the paper maintains that Malaysia is not politically
stable enough to ensure that the country will not nationalize an AT&T facility constructed
there. The paper recommends that the company locate in Mexico, putting into practice
those programs it would have in a US facility - environmental standards and employee
assistance programs - to create an intensely loyal and qualified workforce while still
realizing greatly reduced manufacturing costs. Bibliography lists 1 source.
Filename: KS-ATTMex.doc
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