Location Planning

There are many reasons why people migrate to other countries. In China, the main reason is problems with the government. Many Chinese students graduate from college and migrate to other countries due to the government being very difficult and radical. In China businesses must reapply for their license every 3 years and sometimes they’re afraid that it will not be reassigned to them. This has become a major cause for entrepreneurs to leave China and bring their businesses oversea to another country.

It is crucial for a business to know where their customers come from in order to select the best location for the store. Choosing the best geographic area can help in the success of the business or the failure of the business. This is why Trader Joe’s has particular criteria when choosing new store locations. Trader Joe’s is aware who their target consumer is and utilizes the data they receive to place their locations in the areas that will benefit in the growth of the organization.

The company also should consider other factors in choosing the location of the plant including:

The main idea that most of the organization is following to be more succesful that is to bring labor to a company rather then taking the company to the labor. Tanglewood retailers, have to establish locations closer to their distributers, this is because Tanglewood has 12 geographic regions and 20 stores per region. This means the regional managers have little experience on how HR runs throughout the 20 stores. Tanglewood needs external and internal training for these

The foreign market must offer a location advantage that makes it profitable to produce the product in the foreign country rather than simply produce it at home and export it to the foreign market. It includes resource endowments, economic and social factors, such as market size and structure, prospects for market growth and the degree of development, labour and input materials costs, the cultural, legal, political and institutional environment, government legislation and policies

A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs than locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $185 in either case.

That is what is important, planning ahead and looking at the pros and cons is an effective part of running a business. An employer should have a plan to relocate employees, they should consider the skill level of the employee, along with the skills required to do the job, and also consider whether they have the capital that is necessary to make the move and cover their current position.

Overall every component of the process could be considered to relay on each other. First it is fundamental to have a product generating demand within a specific target market. While the product generates demand consequently motivates companies to invest in manufacturing the product. At this point is where facilities come into consideration. Based upon product demand a production structure and distribution strategies are developed; the focus is for each facility to function productively, maximizing profits, avoiding unnecessary expenses (lowering cost), or avoid lost of sale due to lack of correct planning tactics. Once the product has been manufactured it is crucial to deliver to the locations where the consumers

The Recommendation proposed here presented a global location selection reference tool for identifying key competences for potential sites and suggested how these competences can be used effectively and strategically in company’s supply chain. Additionally, the recommendation was addressed based on the assumption of locating all manufacturing stages at one site for worldwide distribution.

The position of the business is an integral component to its success as the location can either make or break the business.

The people of those countries will be mad if that company moves out. Since companies have gone global, their officers are also from different parts of the world. Their headquarters are in one place and factories in another. It starts to get hard to tell where the company belongs.

According to a consultant’s report, the success of a relocation business depends on the capacity to provide services at lower cost than if clients did it themselves. Therefore, it is very important for CTS to offer services at a moderate cost. The more services offered within their corporation at an optimal level the more possible revenue per customer.

Identify the significant cultural issues involved when evaluating the attractiveness of a particular location as a place for doing business

For any company going out for the foreign market is because of any one out of globalization, reducing tariff all over the world, to increase the market share, saturation of the local market, for getting the economies of scale of production, to use their excess capacity and use the resources where it is available at law cost.

Locations for outsourcing jobs is very important as companies need to decide what is going to be the cheapest option but also the most beneficial in terms of maintaining their remaining clients and customers, there tends to be quite high volume complaints when it comes to outsourcing jobs, problems can arise often due to language barriers, so choosing the best location