location Flashcards
1
Q
How to select a new location for business expansion
A
- Identify the country that aligns with the parent orgs’ key success factors (KSFs)
- The choose region of chosen country and community
- specific site within a community
2
Q
What are some KSFs governing country selection
A
- Political risks, government rules, attitudes, incentives
- Cultural and economic issues
- Location of markets
- Labor talent, attitudes, productivity, costs
- Availability of supplies, communications, energy
- Exchange rates and currency risk
3
Q
Determinants of Region/Community Decision
A
- Corporate Desires
- Attractiveness of Region (Culture, Taxes, Climate, etc.)
- Labour availability, costs, attitudes towards unions
- Cost and availability of utilities
- Environmental regulations of state and town
- Government incentives and fiscal policies
- Proximity to raw materials and customers
8 Land/construction costs
4
Q
Factors that affect Site Decision
A
- Site size and cost
2.Air, rail, highway, and waterway systems - Zoning restrictions
- Proximity of services/supplies needed
- Environmental impact issues
6.Customer density and demographics
5
Q
Besides Globalization, what other factors affect location decision?
A
- Labour productivity
- Foreign Exchange
- Proximity to markets, suppliers and competitors
- Culture
- Changing attitudes toward the industry
6
Q
A