location Flashcards

1
Q

How to select a new location for business expansion

A
  1. Identify the country that aligns with the parent orgs’ key success factors (KSFs)
  2. The choose region of chosen country and community
  3. specific site within a community
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2
Q

What are some KSFs governing country selection

A
  1. Political risks, government rules, attitudes, incentives
  2. Cultural and economic issues
  3. Location of markets
  4. Labor talent, attitudes, productivity, costs
  5. Availability of supplies, communications, energy
  6. Exchange rates and currency risk
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3
Q

Determinants of Region/Community Decision

A
  1. Corporate Desires
  2. Attractiveness of Region (Culture, Taxes, Climate, etc.)
  3. Labour availability, costs, attitudes towards unions
  4. Cost and availability of utilities
  5. Environmental regulations of state and town
  6. Government incentives and fiscal policies
  7. Proximity to raw materials and customers
    8 Land/construction costs
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4
Q

Factors that affect Site Decision

A
  1. Site size and cost
    2.Air, rail, highway, and waterway systems
  2. Zoning restrictions
  3. Proximity of services/supplies needed
  4. Environmental impact issues
    6.Customer density and demographics
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5
Q

Besides Globalization, what other factors affect location decision?

A
  1. Labour productivity
  2. Foreign Exchange
  3. Proximity to markets, suppliers and competitors
  4. Culture
  5. Changing attitudes toward the industry
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6
Q
A
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