IX. Plan of implementation
The implementation plan should have several different parts. The first part is the analysis. The decision has been made to relocate some of the plants from locations with high labor and production costs to countries where these costs are lower. The analysis will need to show which each of these countries are. The idea is that the new countries will need to have some of the characteristics that serve company interest. These would include being close to markets where the products are sod or, if it is the same country, a sufficient purchasing power for the customers in the new locations.
The action plan or actual implementation plan should follow. The implementation plan will include dates and times when things are being moved, prices, for goods that are being auctioned and no longer retained in the new locations, personnel that will need to move to the new locations (for example, it is likely that several managers will need to move, such as the production and marketing and sales managers, to streamline these activities during the first couple of months) etc.
An important part of the relocation will need to be the decision on whether the company is going to start a new facility as a green investment or whether it will purchase an existing production plant or an existing local company making automobiles. The advantage of the latter is that the purchase would come with some equity, including a well-trained human resource. The disadvantage is that this solution would also imply higher costs on the purchasing entity.
The implementation phase will also need to include the marketing and sales phases. First, the company will need to make itself known on the local market, as well as on potential neighboring markets, for which the cost of transportation and sales would be small. For example,...
Given the fact that these countries are now in the European Union, Renault could also take advantage of what this means: no custom taxes between member states, the same regulation and legislation etc.
The implementation phase will also require a clear training plan, at all levels of any new production unit. Obviously, it is clear that some of the new employees will need to be trained, if not in the actual working activities, at least when it comes to the corporate culture at Renault. The best way to do this is to have mentors from the company in each team and empower them to introduce new workers to the corporate environment at Renault.
The implementation plan will also include a monitoring and control approach that would check the achievements against the established objectives and goals of the company. The clear metrics that have been determined for each of the objectives in part A2 of this report will be compared to the actual achievements on the ground, in each of the new countries where the company has relocated and for each of the new type of automobile that has been developed.
Feedback and control should be done at shorter intervals of time during the first months after relocation (every 3 or 6 months), with the timeframe gradually increasing as the new unit gains more ground. The feedback mechanism should be able to point towards any potential problems that would need to be addressed. This can first be done at a local level, by the local management and decision makers, with the problem moving to the country of origin if the problem is not solved.
