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5.4 Location (ways of reorganising production (reduction & control of…
5.4 Location
ways of reorganising production
reduction & control of operating costs
increased flexibility
improved company focus
access to quality service or resources
freed-up internal resources
loss of jobs within the business
quality issues
customer resistance
security
disadvantages to business
high fixed site costs
low profit
high break even level of production
high variable costs
low contribution per unit
low profit
reduce competitiveness
low unemployment rate
problems with recruiting
staff turnover
pay levels must be high
high unemployment rate
low demand of income-elastic products
poor transport infrastructure
rising transportation cost
inaccessible to customers
difficulty in JIT due to unreliable deliveries
potential limitations of offshoring
language & other communication barriers
cultural differences
level of service concerns
supply-chain concerns
ethical considerations
other locational issues
the pull of market
planning restrictions
external economies of scale
multi-site locations
factors influencing location decisions
quantitative
site & other capital costs such as building or shop-fitting costs
labour costs
transport costs
market potential
government grants
qualitative
safety
room for further expansion
managers' preferences
labour supply
ethical considerations
environmental concerns
infrastructure