Finding the proper place is the key to business success. If the company chooses the wrong location, it can not have adequate access to customers, employees, transportation, materials and so on. Therefore, the location often plays a significant role in the company's profits and general success. Location strategy - a plan for the optimal location for companies by identifying the needs and goals of the company and search for places with the proposals, which are compatible with these needs and goals. Typically, this means that the company will try to maximize opportunity by minimizing expenses and risks.
Company location strategy should be part of and conform to the general corporate strategy. Therefore, if the company is striving to become a …show more content…
5. Trade areas.
Companies may want to consider the benefits offered by commercial free zones, which are controlled by the customs authorities where goods may be imported free of customs requirements.
6. Political risks.
The Company is considering the possibility of expanding into other countries should take the political risks into account when drafting a strategy location. Since some countries have unstable political environment, companies must be prepared for revolution and bustle if they plan long-term operations in such countries.
7. State regulation.
Enterprises could also face governmental obstacles and restrictive regulation and, if they intend to broaden to foreign countries. Therefore, when developing location strategy, companies should take into account the governmental and cultural characteristics of other countries.
8. Environmental regulations.
Companies should take into account the various ecological norms, which may affect their activities in different places. Environmental regulations can also have an impact on the relationship between the company and the community around the proposed …show more content…
These criteria must be designed in such a way that the selected locations have a strong chance of success. The company could assess the potential of the promising areas on the basis of the primary criteria, such as:
The population of the community should be more than 100,000.
Annual per capita income should be more than $ 35,000.
After selecting the locations that meet these criteria, the company can further evaluate the potential of location based on a set of criteria, which considers industrialization, people / vehicle ratio, availability of labor, population density and the location of the infrastructure.
TRENDS IN PLACEMENT STRATEGY
Globalization and technology have been the biggest drivers of change in the location decision for the past thirty years. Place of activity has been very high in recent decades as a result of improvements in technology, economic growth, international expansion and globalization, as well as corporate restructuring, mergers and
Company location strategy should be part of and conform to the general corporate strategy. Therefore, if the company is striving to become a …show more content…
5. Trade areas.
Companies may want to consider the benefits offered by commercial free zones, which are controlled by the customs authorities where goods may be imported free of customs requirements.
6. Political risks.
The Company is considering the possibility of expanding into other countries should take the political risks into account when drafting a strategy location. Since some countries have unstable political environment, companies must be prepared for revolution and bustle if they plan long-term operations in such countries.
7. State regulation.
Enterprises could also face governmental obstacles and restrictive regulation and, if they intend to broaden to foreign countries. Therefore, when developing location strategy, companies should take into account the governmental and cultural characteristics of other countries.
8. Environmental regulations.
Companies should take into account the various ecological norms, which may affect their activities in different places. Environmental regulations can also have an impact on the relationship between the company and the community around the proposed …show more content…
These criteria must be designed in such a way that the selected locations have a strong chance of success. The company could assess the potential of the promising areas on the basis of the primary criteria, such as:
The population of the community should be more than 100,000.
Annual per capita income should be more than $ 35,000.
After selecting the locations that meet these criteria, the company can further evaluate the potential of location based on a set of criteria, which considers industrialization, people / vehicle ratio, availability of labor, population density and the location of the infrastructure.
TRENDS IN PLACEMENT STRATEGY
Globalization and technology have been the biggest drivers of change in the location decision for the past thirty years. Place of activity has been very high in recent decades as a result of improvements in technology, economic growth, international expansion and globalization, as well as corporate restructuring, mergers and