Location Decisions
- Major Facility Decisions:
- Additional Building Nearby
- Retain workforce and location preference
- High fixed costs that can’t be shifted
- Lack of other alternatives
- More expensive to manage
- Merge multiple facilities in one nearby
- Retain workforce and location preference
- Cost savings by consolidation, scale economics
- Upgrade operation, equipment and facility
- Recommitment to area
- Relocate entire operation to new area
- Business restructuring or repositioning
- Achieve lower costs
- Control surroundings (green acres)
- Clusters
- Go where the competition is
- Logical for similar companies to make similar location decisions
- Lower transaction costs
- Greater mass leads to lower cost of inputs and ideas
- Why Companies Move
- Growth
- Schools
- Cost of Housing
- Workforce
- Strategic Location
- Lower Prices
- Additional Building Nearby