AllStar’s responsibilities in the U.S. when shifting production overseas
The first responsibility is writing a detailed specification on what is offered by the new location ( Li, Masuda & Nagai, 2014) . This should be compared with the specifications of the US production such that the company will have a detailed explanation of what they need to transfer to the new location.
Besides, information gathering about Peru should be gathered by the organization in the US before undertaking before making the actual move.
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A list of all the equipment needed in Peru should be gathered and put in order. The company should consider what is needed in the new area and how to avail them. For instance, some of the manufacturing machines may be considered for transportation compared to the inventory which may be disposed at fire-sale prices.
Since the transition is supposed to be gradual, the company in US must appoint or hire an individual to be in charge of relocation. He or she will ensure that the employees are laid off while abiding on the US labor laws.
How all-star should manage community relations activities in Peru
Community relations are “the various methods companies use to establish and maintain a mutually beneficial relationship with the communities in which they operate” ( Tench & Yeomans, 2009) . To be manageable, community relations activities must operate under the principle that the company in question must accept the civic responsibilities in addition to taking an active interest in the community’s wellbeing. The management should involve a support of programs, improving the quality of life in Peru community. These activities include: employment, crime prevention, environmental programs, recycling, beautification and clean-ups and restoration.
To increase the prestige and visibility of the company in the new location, the managers may consider participating in a volunteer ship program involving the civic program, for instance, auction or charity drive ( Tench & Yeomans, 2009) . The managers should become personally invested in the community relations activities and should encourage the employees to participate as well. As such, they should encourage the employees to represent the company well to the community as they interact with them, for instance, in treating the customers as well as in participating in good manners on the road while driving company vehicles ( Tench & Yeomans, 2009) . Besides, the managers should develop new and improved ways of boosting morale for the employees to participate in community relations activities.
The managers should also consider the impact the company brochures as well as magazines will have on the organization. If they consider them as an effective means of improving community relations, they may produce and avail them to the public. Importantly, depending on the community engagement activities chosen by the company, the media should not be ignored and should be actively involved.
Some unintended consequences
Oversees outsourcing increases competition and lowers barriers to entry: this is because, a company that cannot keep up with the competition may find it hard to maintain production in the industry ( Bertels & Peloza, 2008 ).
Outsourcing reduces company loyalty: this is because, in case the employees learns that the company is closing down, they may feel demotivated after learning that their job security is not guaranteed.
Eliminating jobs from the workforce of the country from which the company is moving from: for instance, at the moment the company is planning to lay off its US employees and hire others from Peru.
The benefits realized in the insourced country may not be long-term. For instance, the middle class workforce may demand higher pay in the near future, which will eliminate the cost effect realized at the moment.
References
Bertels, S., & Peloza, J. (2008). Running just to stand still? Managing CSR reputation in an era of ratcheting expectations. Corporate Reputation Review , 11 (1), 56-72.
Li, G. D., Masuda, S., & Nagai, M. (2014). The prediction for Japan's domestic and overseas automobile production. Technological Forecasting and Social Change , 87 , 224-231.
Tench, R., & Yeomans, L. (2009). Exploring public relations . Pearson Education.
