Case study on Tesla Location at New United Motor Manufacturing, Inc. (NUMMI) - Essay Prowess

Case study on Tesla Location at New United Motor Manufacturing, Inc. (NUMMI)

Case study on Tesla Location at New United Motor Manufacturing, Inc. (NUMMI)

ADVANTAGES

Tesla increased its production capacity following the acquisition of the plant. Initially, the company produced an average of twenty-one thousands of cars per year but after acquiring the plant Tesla expected an increase in its production of cars to an average of hundred thousand cars per year. Increased production capacity is likely to increase the revenues and profits of the company making it more competitive in the market. Tesla is also able to acquire most of its manufacturing equipment at discounted prices.  To start such plant from the scratch, it would cost Tesla a lot of resources that would strain other operations.  From the case study, it's apparent that the company used approximately a third of what it would have cost in setting up a new assembly plant. Resources available to an organization can strengthen the organization's competitiveness in the global market. More sore efficient utilization o

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