Environmental Assessment on China

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LGMT 685
Group Project Format
I. Executive Summary
II. Environmental Assessment (for entire country)
Physical Setting
Map of country
Population density and distribution
Major cities and possible sites for locating operation
Economic Factors
Current employment rate
Minimum wage and prevailing wages
Average income, in local currency and US$ equivalent
Purchasing power parity
Income distribution
Membership in regional trading blocks
Major industries and products
Labor Force
Labor unions (if any)
Quality and availability of labor force
Population education, literacy levels, and skills
Special issues affecting expatriate workers (if any)
Government sponsored training programs
Legal and Political Environment
Assessment of political stability and risk
Employment law that may impact your business plans or strategies
Requirements of any trading block memberships
Immigration law
Work permits for foreign workers
Work rules for spouse of expatriate workers (if any)
Language (s)
Religion (s)
Dominant cultural values
Work motivation and practices
Values, beliefs, and attitudes
Gender attitudes and issues
Hofstede dimensions (optional)
Other cultural issues for expatriates
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III. Logistics Infrastructure Assessment (for entire country)
Transportation infrastructure
Warehousing and distribution infrastructure
Communication infrastructure
Utilities, etc.
IV. Location recommendation and rationale, which may include one or more of the following:
Proximity to raw materials and/or markets
Availability of land, labor, or other resources
Quality of the local infrastructure
Availability and quality of suppliers
Availability and quality of third party service providers
Tax holidays or other incentives
Quality of life for employees
Other factors that may be relevant for your site — which you think may provide your
firm with some form of competitive advantage.
V. Logistics and supply chain management plan (to support the site selected above) which
should include, but not be limited to:
Planning and forecasting strategy
Sourcing and procurement strategy
Inbound and outbound transportation strategy
Warehouse/distribution center strategy
Inventory management strategy
Outsourcing/3PL strategy
IT strategy
Organizational structure for the logistics function
HR strategy including:
Recruitment and selection plan that addresses who will run the operation (i.e.,
parent country nationals or host country nationals) and where other labor will
come from
Training and development plan, including pre-departure training and orientation if
Compensation and benefits strategy
Employee performance management plan (i.e., is performance managed using
local standards or parent country standards or some mix)
Labor relations strategy
Repatriation strategy, when required
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Performance management strategy
High level logistics and supply chain metrics
How you will know if you have succeeded
VI. Next Steps — a short list of next steps to be taken once the plan is approved.

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