414 (11)
cost advantage.
A firm competing on cost is likely to select a location that provides a ______ _____
fixed costx2 , unit , break even point,
Break Even Model Steps: 1. Identify the locations to be considered 2. Determined the ____ ___ for each facility. The components of ____ ___ are the cost of land, property taxes, insurance, equipment, and buildings, 3. Determine the _____ _____ for each facility. The components of variable cost are the costs of labor, materials, utilities, and transportation, 4. Construct the total cost lines for each location on a graph 5. Determine the ____ ____ ___ on the graph, or algebraically, 6. Identify the range over which each location has the lowest costs
Source factory
Broader strategic role than offshore factories with plant management heavily involved in supplier selection and production planning.
globalization, technology, communication
Companies can locate anywhere with _______, ______, transportation, ______, and open markets
Right-to-Work Laws
Forbid unions and employers to require employees to join a union and pay dues and fees to it in order to get or keep a job
competitive strategy.
Global location decisions optimize performance of the supply chain and are consistent with the firm's _______ _______.
offshore factory
Imports or locally acquires parts and then exports all of the finished products. The primary objective is simply to take advantage of low labor costs
investment
In their search for lower costs, companies have reduced their overall level of ______, but have also widened the scope of their search to encompass new and more cost efficient locations.
efficiency and effectiveness, competitive advantage
Locating a facility is an important decision affecting the ______ and _____ of managing supply chains, the level of service provided to customers, and a firm's overall _______ ______
foreign trade zones (FTZs)
Many countries have _______ ______ ____ where materials are imported duty-free as inputs to production
investment & labor costs.
Offshore factory - low cost ______ & ______
contributor factory
Plays a greater strategic role than a server factory by getting involved in product development, production planning, procurement decisions, & developing suppliers
Green Development
Resource efficiency and technology innovation are keys to reducing cost and increasing competitiveness
production , air pollution, climate change
The critical issues in sustainable development are energy consumption/______, ____ _____, ______ _____
Outpost factory
This facility normally produces something but its secondary role is to be a server or be an offshore factory.
NAFTA
This trade agreement is among the U.S., Canada, and Mexico. Created the worlds largest free trade area,.
weighted factor rating model, break even model
Two techniques that are commonly used by organizations to assist in making global location decisions are
Break even model
Useful location analysis technique when fixed and variable costs can be determined for each potential location.
coordination and trust , fierce competition , technology,
WHY ARE BUSINESS CLUSTERS SUCCESSFUL? close cooperation, ______, and _____, among clustered companies in related industries. Another reason is ____ ____ for customers among rival companies located in the cluster, Companies are more productive in their operations because of access to the local supplier base, information, and _____, Companies are able to recruit from the local pool of skilled and experienced workers, thus reducing hiring costs.
facility location, _____ _____, 1 to 100, weighted score ,
Weighted-Factor Rating Model Steps: 1. identify the factors that are considered important to the ____ _____ decisions. 2. Assign weights to each factor in terms of their ________ _____. The weights sum to 1 3.Determine the relative performance score for each factor considered. Scores vary from ________ , although other scoring schemes can be used. 4. Multiply the factor score by the weight associated with each factor, and sum the weighted scores. 5. The location with the highest total ____ _____ is the recommended location.
EU
[1950] currently consists of 28 members. Two highlights : the establishment of the single market in 1993 and the introduction of the euro notes and coins.
Research parks , industrial zones
______ _____& special economic/_______ _____ serve as magnets for business clusters.
weighted-factor rating model
a method commonly used to compare the attractiveness of several locations along a number of qualitative and quantitative dimensions
Lead factory
a source of product and process innovation and competitive advantage for the entire organization. it translates to knowledge of the market, competitors, and customers into new products.
consolidating & cost reduction
an emphasis on gaining access to new and growing markets is being replaced in thier current location strategies by _______and ______ _____
linked industries
business clusters encompass an array of ____ _____ and other entities important to competition.
sustainable development
development that meets the needs of the present without compromising the ability of future generations to meet their own needs
business clusters
geographic concentrations of interconnected companies and institutions in a particular field.
outputs factory
is set up in a location with an abundance of advanced suppliers, competitors, research facilities, and knowledge centers to get access to the most current information on materials, components, technologies, and products.
source factory
location dictated by low production cost, fairly developed infrastructure, and availability of skilled workers.
Offshore factory
manufactures products at low costs with minimum investment in technical and managerial resources. Low labor cost.
Green Development
prioritizes what its proponents consider to be environmental sustainability over economic and cultural considerations
Server factory
set up primarily to take advantage of government incentives, minimize exchange risk, avoid tariff barriers, and reduce taxes and logistics costs to supply the regional market where the factory is located.
