Operational Strategies - Location Flashcards
1
Q
Methods of making location decisions
A
- Quantitative - investment appraisal
2. Qualitative factors
2
Q
Reasons for international location
A
- Global markets
- Cost reduction
- Avoidance if trade barriers
3
Q
Main factors influencing business location
A
- Technology
- Cost of factors of production
- Infrastructure
- Qualitative factors
4
Q
Factors influencing location decisions involving expansion and/or relocation
A
- Resources
- The market
- Government intervention
5
Q
Benefits of optimal location
A
(Best location for the business)
- Improving competitiveness
- Providing a unique selling point
- Increasing access to customers
- Increasing flexibility
6
Q
Advantages of multi site locations
A
- Lower costs
- Improved market focus
- Avoidance of trade barriers
- Increased flexibility
- Overcoming cultural barriers
- Regional specialisation
7
Q
Disadvantages of multi site locations
A
- Globalisation
- Increased unit costs
- Increased risk
- Loss of control
- Cultural differences
