Location Planning and Analysis

Location and Planning
Introduction
Firms need to make decisions concerned with locations of operations for various reasons
This presentation seeks to evaluate on this issue and its related aspects
Research Question
What does a firm need to make decision on locations of operations?
Location Decisions
Necessity for Location Decisions
To enable firms expand their markets
To enables the firms compliment with an existing system
To enable firms in looking a friendly environment for its operations
Nature of Location Decisions
Firms need to make decisions that will lead to expansion of their markets
A new location is essential to a firm for the creation of alternative or option for the existing market
Firms may need to relocate due to the straining costs in business operations from the current location
4.0 Global Locations
The move has resulted into the opening of new markets and increment in the dispersion of manufacturing and services all over the globe
Reasons for Globalization Locations
Reduction in barriers to international trade among bodies such as NAFTA, GATT, EU and US-China relations
Advancement in communication technology
Opening of new markets
Increment in production
4.2 Benefits of Globalization Locations
Enables the companies to seek for wider markets for their goods, services and customers
Saves costs in areas such as transport, labor, raw materials and taxations
Fewer restrictions and regulations in the environment of operations
Companies may be safe from impacts out of change in currencies in different countries.

4.3 Disadvantages of Globalization Locations
Poor infrastructure in place may lead to high transportation costs
High chances of thefts and security threats along the international borders
Circumstances of low-skilled labor may be witnessed in low developed countries thus leading to low quality in production
Employees at times may work in poor conditions with low wages
Low labor returns as a result low quality in production may affect the employees’ morale negatively
4.4 Risk Factors Associated Globalization Locations
Unstable political environments that may a threat to the safety and security of the parties involved
Threat from terrorism activities that also hinders safety and security matters
Unstable economic environments that may lead to inflation or deflation thus causing negative impacts on profitability
Instances of corruption and bribery in some countries that may hamper the smooth operations and at times reduction in the profitability
Cultural variations the levels of interactions and in smooth turn operations of the activities carried by the company
Management of Global Operations
Managers need to prioritize on corruption, bribery and work ethics within the workplaces
Management needs to factor in the level of technological integration, communication and cultural variation between different countries as they seek to realize success in their operations
Automation
Automation is the influence generated by the decision concerned with production of goods and services in the domestic markets
The fact that a cheap labor exists in foreign locations, in this case, makes it a reason for choice of foreign location for production
Despite the above, companies also need to factor in any other issues that may hinder their successful operations following such decisions.
Conclusion
A firm needs to make choices wisely in relation to global locations
Wise choices will lead to successful operations
Acknowledgment
May I convey my warmest gratitude to the people who assisted me in any way or other, in ensuring the success of this presentation
Question
Any questions from the floor please?