Microsoft words Essay Example | Topics and Well Written Essays - 1500 words

Microsoft words - Essay Example The 5 year financial projection of the company on the basis of following growth estimates are shown below: The inflation is expected to decline gradually and by the second quarter of 2017 it is expected that inflation will turn negative. This will reduce lending and borrowing rates which will enable the manufacturing companies to leverage returns by employing debt capital. The population is expected to increase in a predictable linear trend pattern which is good for manufacturing industry. This is because higher population will create higher demand for goods and services. The graph depicted above forecasts Information Technology & Communications expenditure. The graph reveals as to why European telecommunication networks and services are the backbone of Europe’s developing technology sector. Increased expenditure in this sector will encourage manufacturing industry to use modern technology in the manufacturing process. This market size is an indication of developing political, legal and economic factors of the country. Increasing Operating cost is the most critical issue in any business and in order to increase profitability, this needs to be controlled. One can consider manufacturing in domestic market of UK because of the political factors that are currently aimed at reviving lost market demand after recession. For instance, the UK government has planned to strengthen the existing supply chain network in UK which would create and preserve over 15,000 jobs in manufacturing industry. The rationale is that by boosting manufacturing sector and creating more jobs, the economy will accelerate out of recession. A joint industry and government investment in form of public-private partnership aims to strengthen advanced supply chain in UK by investing over  £200 million (Schutte, 2013). When one conducts a cost-benefit analysis for setting up a manufacturing base in UK the company has to perceive the investment decision keeping in mind the