Location Planning and Analysis Overview

Location Decisions

are closely tied to an organization's strategies.

low

Being a low-cost producer might result in locating where labor or material costs are ____

high-traffic areas

Increasing profit by increasing market share - locating in

one best; acceptable

Most organizations do not set out with the intention of identifying what? instead they find a number of what locations?

supply chain

Location criteria can depend on where a business in the ____

supply chain configuration

Supply chain management must address ______

supply chain configuration

This includes determining the number and location of suppliers, production facilities, warehouses and distribution centers

Restaurant or hotel renovation/remodeling

examples of expanding an exisitng facility

Do nothing

what location option to do when you maintain status quo?

Depletion of Resources

Reduction of available materials or assets.

Low-Cost Producer

Firm minimizing production costs for competitive advantage.

Profit-Oriented Organizations

Businesses aiming primarily for profit maximization.

Non-Profit Organizations

Entities focused on service over profit.

Centralized Distribution

Consolidating operations in a single location.

Location Options

Various strategies for facility placement decisions.

Trade Agreements

Barriers to international trade such as tariffs and quotas have been reduced or eliminated with trade agreements.

Technological Advances

communication and information sharing have been very helpful.

Markets

Companies often seek opportunities for expanding markets for their goods and services, as well as better serving existing customers by being more attuned to local needs and having a quicker response time when problems occur.

Cost Savings

savings in transportation costs, labor costs, raw material costs and taxes.

Legal and Regulatory

There are more favorable liability and labor laws and less restrictive environmental and other regulations.

Financial

Companies can avoid the impact of currency changes that can occur when goods are produced in one country and sold in other countries

Political

___ instability impacting business safety and operations.

political instability; political unrest

can create risks for personal safety and the safety of assets.

Terrorism

continues to be a threat in many parts of the world, putting personnel and assets at risk and decreasing the willingness of domestic personnel to travel to or work in certain areas.

Economic

_____ instability might create inflation or deflation, either of which can negatively impact profitability.

legal

Laws and regulations may change, reducing or eliminating what may have been key benefits.

Quality

Lax quality controls can lead to recalls and liability issues.

ethical

Corruption and bribery, common in some countries, may be illegal in a company's home country.

Cultural

Cultural differences may be more real than apparent

Clustering

When businesses locate near similar businesses