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Questions and Answers
What are some procedures/tools that can be used to evaluate location alternatives?
What factors can drive the need for location decisions?
What are some objectives of location decisions according to the text?
What are the location options available to existing companies according to the text?
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What is a general step in the location decision procedure according to the text?
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What is the primary focus of facility location?
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What is a key benefit of proximity to customers?
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Why is Silicon Valley an attractive location for certain businesses?
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What is a potential disadvantage of globalization?
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How many steps should be followed in making location decisions?
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Study Notes
Evaluation Procedures and Tools for Location Alternatives
- Utilization of quantitative methods like cost-benefit analysis and scoring models to measure locations against defined criteria
- Geographic Information Systems (GIS) for spatial data analysis and visualization to aid in decision-making
- Traffic counts and demographic studies to assess potential customer access and market presence
Factors Driving Location Decisions
- Market access to customers and demand for products or services
- Availability and cost of labor, impacting staffing and operational expenses
- Infrastructure and transportation facilities to ensure effective supply chain management
- Incentives offered by local governments, like tax breaks or grants, influencing financial feasibility
Objectives of Location Decisions
- Minimize operational costs while maximizing efficiency and profitability
- Enhance accessibility to customers, suppliers, and transportation networks
- Ensure alignment with strategic business goals and sustainable practices
- Foster community relations and support corporate social responsibility initiatives
Location Options for Existing Companies
- Expansion into new geographical markets to capture additional customer segments
- Relocation to more advantageous sites that offer better resources or cost efficiencies
- Developing new facilities or optimizing existing ones based on location characteristics
General Steps in the Location Decision Procedure
- Identifying location requirements based on business needs and market conditions
- Evaluating and comparing potential locations using qualitative and quantitative analyses
- Making informed decisions based on thorough data review and organizational objectives
Primary Focus of Facility Location
- To strategically position facilities to optimize efficiency, minimize costs, and enhance service delivery
Key Benefit of Proximity to Customers
- Increased customer satisfaction and loyalty due to reduced delivery times and improved service
Attractiveness of Silicon Valley for Certain Businesses
- High concentration of tech talent, innovation culture, and access to venture capital fostering entrepreneurial growth
- Networking opportunities with established firms and startups within a robust ecosystem
Potential Disadvantage of Globalization
- Increased competition from international markets, potentially impacting local businesses and employment
Number of Steps in Making Location Decisions
- A structured approach often involves multiple steps, typically ranging from understanding requirements to final decision-making, ensuring thorough evaluation throughout.
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Description
Explore the key factors influencing facility location decisions in real estate and production. Topics include proximity to sources of supply, customers, transportation costs, and long-term commitment.
