Primary Task Response: Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions with your classmates. Be substantive and clear, and use examples to reinforce your ideas.
In meetings with the chief executive officer (CEO), she asked you to identify a number of the typical criteria used when making new location decisions. Complete the following:
Describe and list at least 2 specific criteria to use.
Explain the logic of why each criterion should be important.
On a relative scale of importance, assign a high, medium, or low weight to each of the criteria.
Week 2 Discussion Board
13 July 2016
There are many things to consider when shopping for a new location in which to expand, or continue to make your business successful. Among these factors include two very high importance factors to consider: Facilities, and feasibility.
Facilities: Facilities planning involves determining what kind of space a company will need given its short-term and long-term goals (Heil, n.d.).
Feasibility: Feasibility analysis is an assessment of the different operating costs and other factors associated with different locations (Heil, n.d.).
The two considerations above are, in my opinion, of the highest importance because they are part of the first steps when considering a new location. Is this goal even possible? Will we have somewhere to grow our business once we get there? Before worrying about a facility, a feasibility analysis would need to be completed to look at all aspect of where the company currently sits. Do we have the funds to make this transfer? Do we have the manpower and employees to continue to keep the company running while we are in transition? All of these questions and more are asked, analyzed, and answered before any moves are made.
After the company has decided that, yes, they are going to move forward with the relocation, they need to first find a facility in their new geographical location. When it comes to a facility, many sub-considerations come into place, like size for example. We don’t want to pay too much for a space that’s too big and we will never fill, or don’t need, but we most certainly want to make sure the facility is large enough to hold all employees and whatever inventory is necessary.
In addition to these two high importance considerations, one that falls low on the importance list, but something I never would have thought of, are the incentives for going one place over another.
Incentives: Incentive negotiation is the process by which a company and a community negotiate property and any benefits the company will receive, such as tax breaks. Incentives may place a significant role in a company’s selection of a site (Heil, n.d.)
It’s kind of cool that different places will offer tax incentives for moving your company there. I would assume that these would be places that are trying to rebuild, like New Orleans after the hurricane, or up and coming cities around the world that need established companies to come in and make a name for their city.
All of these considerations, and more, are able to help companies choose where best to move their business in order to best serve their needs and achieve their goals.
Location Strategy – levels, system, advantages, type, company, business, system. (n.d.). Retrieved from http://www.referenceforbusiness.com/management/Int-Loc/Location-Strategy.html