Problem Identification: Should Teleleader build a new manufacturing plant in Malaysia or Mexico? Will the factory provide for the 10% decrease in cost of the pager that can be transferred to a 10% price eduction to maintain their competitive pricing and regain/maintain their pager market share? Is Malaysia actually a cost savings? What about risks involved with inflation and foreign exchange rates?
Hypothesis:Teleleader should build their second manufacturing plant in Malaysia creating a cost savings greater than would be created by constructing an additional facility in Mexico. More specifically the facility should be located in the Penang/Selangor area.

Analysis of Hypothesis
Is there a significant cost savings associated with a Malaysian based manufacturing plant?
• Opening a factory in Malaysia offers significant cost savings in many different areas.
1. Corporate tax rates 7% savings over Mexico's
2. Teleleader will enjoy a tax vacation period of 3-5 years beginning......

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Title: Teleleader Case
Approximate Word Count: 1082
Approximate Pages: 5 (250 words per double-spaced page)

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