Business Location Decisions Essay

Exclusively available on Available only on IvyPanda® Made by Human No AI

The business location decision is one of those playing the most influential factors influencing the quality of business performance. Choosing an area for a company’s spatial placement, managers have to consider particular strategies depending on the specialization area and the primary objectives of the organization. The business location decision-making presents a variety of challenges (especially for global corporations) and, in case of success, contributes to the development and economic growth of an enterprise.

The evaluation of enterprise location perspectives requires considering some decisive factors such as market, labor, safety, and economic advancement. According to Kimelberg and Williams (2013), these factors have to be analyzed from the perspective of the company’s type of facility. Large firms as “the operational units of an economy” employ precise analysis of the indicators of investment, production, and sales opportunities available on the territory they select (Laulajainen & Stafford, 2013, p. 1). The factors of supplier and consumer activity are also taken into consideration.

Cultural differences between the country of the company’s origin and the targeted area might be a challenge when regarding consumer relations and employment opportunities. It is vital for businesses to address the specific features of the countries and communities where their facilities are going to be located (Laulajainen & Stafford, 2013). Competition with local enterprises relates to the “overlapping products and area charters” (Laulajainen & Stafford, 2013, p. 380). Thus, a firm has to introduce a modified approach to compete with the current market.

In the case of an expertly designed strategy, the location of a corporation’s facilities contributes to their economic success. According to the study conducted by Ketokivi, Turkulainen, Seppala, and Rouvinen (2017), the most effective way to make a successful business location decision is to target “high-cost countries” for facilities placement (p. 20). The high GDP level countries offer higher prices and require higher wages. That is why it is essential to consider the type of facilities concerning its particular location.

Concluding the discussion, the location-oriented strategy employed by big corporations is potential to provide the basis for its rapid growth. There are some challenges firms might face on their way to general progress. They include cultural differences between the country of origin and the targeted territory, and the economic competition. However, all the efforts contribute to the overall development of the commercial sector in general, and an enterprise, in particular.

References

Ketokivi, M., Turkulainen, V., Seppala, T., & Rouvinen, P. (2017). Why locate manufacturing in a high-cost country? A case study of 35 production location decision. Journal of Operations Management, 49(51), 20-30.

Kimelberg, S.M., & Williams, E. (2013). Evaluating the importance of business location factors: The influence of facility type. Growth and Change: A Journal of Urban and Regional Policy, 44(1), 92-117.

Laulajainen, R., & Stafford, H.A. (2013). Corporate geography: Business location principles and cases. New York, NY: Springer Science & Business Media.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2022, January 20). Business Location Decisions. https://ivypanda.com/essays/business-location-decisions/

Work Cited

"Business Location Decisions." IvyPanda, 20 Jan. 2022, ivypanda.com/essays/business-location-decisions/.

References

IvyPanda. (2022) 'Business Location Decisions'. 20 January.

References

IvyPanda. 2022. "Business Location Decisions." January 20, 2022. https://ivypanda.com/essays/business-location-decisions/.

1. IvyPanda. "Business Location Decisions." January 20, 2022. https://ivypanda.com/essays/business-location-decisions/.


Bibliography


IvyPanda. "Business Location Decisions." January 20, 2022. https://ivypanda.com/essays/business-location-decisions/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1