Please enable JavaScript.
Coggle requires JavaScript to display documents.
5.4 Location (Factors (Costs (Labour, Transport, Land), Government (Laws,…
5.4 Location
Factors
Costs
Labour
Transport
Land
Competition
Type of land
Markets
Familiarity with the area
Labour pool
Infrastructure
Suppliers
Government
Laws
Taxes
National, regional or international
The impact of globalization
best analyzed based on the 4 business function
Pull factors
improved communications
dismantling of trade barriers
deregulation of the worlds nancial markets
increasing size of multinational companies.
Push factors
reduce costs
increase market share
use extension strategies
use deensive strategies.
Outsourcing (sucontracting) and offshoring
the practice of using another business (as a third party) to complete the part of the work
Outsourcing can help a business cut costs in order to earn a competitive advantage
Offshoring is an extension of outsourcing in the case of offshoring, a business outsources outside the home country
in-housing and reshoring
reverse outsourcing, to stop this approach and
to start performing peripheral activities internally again.
the business decision to stop outsourcing may be motivated by the desire to regain full control or to reduce the costs of taxes, labour and transportation
reshoring refers to the practice of taking back jobs lost to subcontracting overseas, in order to refocus on the quality end of the market