Location Strategies
8
© 2014 Pearson Education, Inc. 8-1
, Learning Objectives
When you complete this chapter you
should be able to:
1. Identify and explain seven major factors that effect
location decisions
2. Compute labor productivity
3. Apply the factor-rating method
4. Complete a locational break-even analysis
graphically and mathematically
5. Use the center-of-gravity method
6. Understand the differences between service- and
industrial-sector location analysis
© 2014 Pearson Education, Inc. 8-2
, The Strategic Importance of
Location
► One of the most important decisions
a firm makes
► Increasingly global in nature
► Significant impact on fixed and
variable costs
► Decisions made relatively
infrequently
© 2014 Pearson Education, Inc. 8-3
, The Strategic Importance of
Location
► Long-term decisions
► Once committed to a location, many
resource and cost issues are difficult
to change
© 2014 Pearson Education, Inc. 8-4
8
© 2014 Pearson Education, Inc. 8-1
, Learning Objectives
When you complete this chapter you
should be able to:
1. Identify and explain seven major factors that effect
location decisions
2. Compute labor productivity
3. Apply the factor-rating method
4. Complete a locational break-even analysis
graphically and mathematically
5. Use the center-of-gravity method
6. Understand the differences between service- and
industrial-sector location analysis
© 2014 Pearson Education, Inc. 8-2
, The Strategic Importance of
Location
► One of the most important decisions
a firm makes
► Increasingly global in nature
► Significant impact on fixed and
variable costs
► Decisions made relatively
infrequently
© 2014 Pearson Education, Inc. 8-3
, The Strategic Importance of
Location
► Long-term decisions
► Once committed to a location, many
resource and cost issues are difficult
to change
© 2014 Pearson Education, Inc. 8-4
