Asked by Flaviano Maurice on Jul 07, 2024
Verified
For what type of organization might the location decision area be the least important of its ten decision areas? For what type of organization might the location decision be the most important of the ten decision areas? Discuss; include examples.
Location Decision
The process of determining the most appropriate geographical location for a company's operations, services, or manufacturing facilities.
Decision Areas
The key aspects or fields within an organization or endeavor that require choices to be made, shaping strategy and operations.
- Grasp the significance of location decisions across different types of organizations and how it impacts operational strategies.
Verified Answer
ZK
Zybrea KnightJul 12, 2024
Final Answer :
The relationship between the organization and its suppliers or its customers is key. If that relationship is very weak (as in no transportation costs, or customers can reach the firm from any location), location diminishes in importance. If that relationship is strong (uniqueness of site, high transportation costs, customers will not travel far) location increases in importance. "Least" examples: Telemarketing firm, tax help-line, Internet sales. "Most" examples: gold mine, oil well, ski resort.
Learning Objectives
- Grasp the significance of location decisions across different types of organizations and how it impacts operational strategies.