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Location - Coggle Diagram

- - - - Some businesses choose to locate near competitors to attract the same customer base or to offer something different
  - - - Bulk-gaining industries make products that weigh more after production than before production,
      - Hence, these industries need to be located near to the customer because the final product is bulkier and heavier than the raw materials used to make it.
    - - Bulk-reducing industries make products that weigh less after production than before production
      - As it costs more to transport heavier resources, bulk-reducing industries usually have their manufacturing bases located close to the sources of raw materials.
- - - - it can
        
        reduce costs
        
        access specialised expertise
        
        focuse on core competencies
      - When a business delegates specific business activities to external service providers
      - long term
    - - when specific parts of a larger project or contract are assigned to third parties
      - The business remains responsible for the overall project or contract but certain components or tasks are delegated to other companies/individuals with specialised skills
      - short term
    - - advantages
        
        Access to specialsied skills
        
        Increased flexibility
        
        They can provide greater flexibility to scale their operations up or down based on demand fluctuations which is particularly valuable in industries with seasonal or unpredictable demand
        
        cost savings
        
        Businesses can often reduce expenses associated with operations such as hiring and training employees
        
        Focus on core competencies
        
        Businesses can concentrate their resources and efforts on their core competencies where they can add value
      - limitations
        
        data security and confidentiality
        
        Sharing sensitive information outside of the business introduces potential risks to data security and confidentiality
        
        communication and cultural differences
        
        loss of control
        
        Handing direct control over those activities to others outside of the business may be risky.
        
        Quality control
        
        Using external providers makes it harder to ensure consistent quality and adherence to company standards
  - - - advantages
        
        allows businesses to use skilled labour that might not be available domestically
        
        Allows a business to take advantage of 24/7 operations and preven better customer support
        
        labour costs sare often lower in offshore llocations
        
        businesses can gain local market insights, develop relationships with customers and spot new growth opportunities
      - disadvantages
        
        Maintaining quality control can be more challenging
        
        involves sharing sensitive information and intellectual property with external parties which may raise concerns about data security or confidentiality
        
        communication and language differneces can result in delays and challanges
        
        can result in domestic job losses
  - - - quality control
        
        Business retains control over the quality of work being produced and may find it easier to establish their own standards
      - Flexibility
        
        It provides the business with greater flexibility to respond to changing business needs
      - cost control
        
        Insourcing can be a cost-saving strategy as it eliminates the need to pay external specialists
      - knowledge abd skill retention
        
        Businesses can develop specialised skills within their own workforce
    - - Multinational companies that want to expand in overseas markets cannot rely on insourcing as a growth strategy.
      - Employees may not have the required knowledge, abilities or experience to perform the tasks.
      - It can be expensive and have a negative impact on profits
  - - - intellectual property protection
        
        reduced risk of intellectual property theft
      - supply chain resilience
        
        reshoring reduces dependence on foreign suppliers
      - quality control
        
        better control over manufacturing processes and ensure higher quality control standards
      - market proximity
        
        Allows businesses to be closer to target marketss-->reduced transportatoin cost and time and better responsive in customer demands
      - cost considerations
        
        initial cost advantages of offshoring may reduce due to factors such as rising labour or transportation costs in the foreign country
    - - resourcing needs
        
        there may be a lack of local expertises
      - international relations
        
        likely to damage reelations with the foreign country where you used to offshore
      - higher costs
        
        producing in the home country normally involves more expensive operations