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You are the plant manager for ICL, Inc., a manufacturer of auto parts. A growing market for your firm is automakers who want it to participate in the design of the car and to design certain parts. Your design team has developed an excellent reputation among automakers for quality designs, which have reduced warranty and service costs for the automakers. The result has been that a substantial part of your firm's revenues are now from design work, and sometimes your firm subcontracts the actual manufacturing to other manufacturers. Nevertheless, competitors continue to cut prices, and you find it more difficult to cut costs to meet the competition. Your firm has designed a new, automated factory in Georgia to take advantage of tax breaks allowed by the State of Georgia and the local community. Discuss the strategic aspects of the plan for the new factory.

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