Chapter 8 - Location planning and analysis. In this chapter students will be able to: Identify some of the main reasons organizations need to make location decisions, explain why location decisions are important, discuss the options that are available for location decisions,. | Location Planning and Analysis Chapter 8 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 1 You should be able to: LO Identify some of the main reasons organizations need to make location decisions LO Explain why location decisions are important LO Discuss the options that are available for location decisions LO Give examples of the major factors that affect location decisions LO Outline the decision process for making these kinds of decisions LO Use the techniques presented to solve typical problems Chapter 8: Learning Objectives 2 The Need for Location Decisions Location decisions arise for a variety of reasons: Addition of new facilities As part of a marketing strategy to expand markets Growth in demand that cannot be satisfied by expanding existing facilities Depletion of basic inputs requires relocation Shift in markets Cost of doing business at a . | Location Planning and Analysis Chapter 8 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 1 You should be able to: LO Identify some of the main reasons organizations need to make location decisions LO Explain why location decisions are important LO Discuss the options that are available for location decisions LO Give examples of the major factors that affect location decisions LO Outline the decision process for making these kinds of decisions LO Use the techniques presented to solve typical problems Chapter 8: Learning Objectives 2 The Need for Location Decisions Location decisions arise for a variety of reasons: Addition of new facilities As part of a marketing strategy to expand markets Growth in demand that cannot be satisfied by expanding existing facilities Depletion of basic inputs requires relocation Shift in markets Cost of doing business at a particular location makes relocation attractive LO 3 Location decisions: Are closely tied to an organization’s strategies Low-cost Convenience to attract market share Effect capacity and flexibility Represent a long-term commitment of resources Effect investment requirements, operating costs, revenues, and operations Impact competitive advantage Importance to supply chains Location Decisions: Strategically Important LO 4 Location: Options Existing companies generally have four options available in location planning: Expand an existing facility Add new locations while retaining existing facilities Shut down one location and move to another Do nothing LO 5 Global Location: Benefits A wide range of benefits have accrued to organizations that have globalized operations: Markets Cost savings Legal and regulatory Financial Other LO 6 There are a number of disadvantages that may arise when locating globally: Transportation costs Security costs Unskilled labor Import restrictions .
