Term Paper “Making the Most of Foreign Factories”
Jeremy Rochford
California State University San Marcos

Abstract
The article “Making the Most of Foreign Factories”, written by Kasra Ferdows discusses how companies can and should obtain the full potential of their factories abroad. She begins by stating that there are two approaches to manufacturing and a factory’s importance to the company is based on the approach the manager of the factory takes. She also exclaims how she thinks the gap between companies that treat their foreign factories as a source of competitive advantage and those that do not is widening.
Next, Ferdows discusses the three current realities of global business. She follows by illustrating the six categories that foreign factories fall into and the strategic matrix, which is used to help manager’s move factories along the matrix. Then she describes the managerial approaches used to upgrade the strategic roles of factories. She exclaims how choosing the right type of manager at each kind of factory is extremely important to the growth of that factory. She ends her article by describing the obstacles and temptations that stand in the way of a factories proper growth.

Ferdows begins her article by arguing that companies take two approaches when handling their foreign factories. The company either views manufacturing as a competitive advantage or they do not. She begins by stating that most companies do not utilize the full potential of their factories in other countries. These factories were constructed mainly to help the companies benefit from tariff and trade concessions, cheap labor, capital subsidies, and reduced logistics costs. Because of this many manufacturing managers ignore these factories and do not take the necessary steps needed for the factories to grow and reach their full potential. In the minds of many companies