Case Scenario 2: Heartsong LLC

question 3

Essay

Case Scenario 2: Heartsong LLC.
Heartsong LLC is a designer and manufacturer of replacement heart valves based in Peoria, Illinois. While a relatively small company in the medical devices field, it has established a worldwide reputation as the provider of choice of high-quality, leading-edge artificial heart valves. Most of its products are sold to large regional hospital systems and research hospitals around the world, though primarily to customers in the United States and Europe. Specialty heart centers are another emerging, but fast-growing market for its valves. Heartsong has recently embarked on an expansion strategy that requires it to increase its volume, which in turn will demand more component parts than it can source domestically- both from an economic and volume standpoint. The firm has determined that such growth is only viable if it produces these parts itself overseas for a lower cost, or outsources the production entirely to a joint venture it establishes with a local manufacturer, which could both produce the parts more cheaply and in higher volumes. It is considering starting up an owned production facility in Luxembourg, or seeking a joint venture with a precision manufacturer in China.
-(Refer to Case Scenario 2). What opportunities and threats might Heartsong be exposing itself to via the
Luxembourg expansion proposal?

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Definitions:

Set Point

A theory suggesting that the body maintains its weight and energy balance through internal regulatory mechanisms.

Brain Damage

Physical damage to the brain, which can result in impairments in cognitive function, physical ability, or emotional behavior.

Body Weight

The mass or weight of a person's body, often used as an indicator of health and wellness.

Ventromedial Hippocampus

A region of the hippocampus involved in the regulation of emotions, fear responses, and the formation of memories.