BUSI 2301 Lecture 1: Chapter 8 notes
Document Summary
Growth marketing strategy, shifts in market or in business costs depletion of resources. Identify the importance factors: gather info on appropriate sites, short list, site visits and meetings, evaluate and make a selection. Regional: raw material, location of markets, labour cost, other costs (taxes other incentives) Foreign locations: political stability, attitude toward companies, language and cultural difference, exchange rates and currency risks. Site related factors: site size and room for expansion, utility and sewer capacity, parking, zoning restriction. Why locate in canada: shortened delivery time, access to natural resources, skilled labour, politically very stable, safe and secure, good telecommunication, low cost for energy health care, lower wage and exchange rates. Determine fixed and variable costs, plot total costs lines, and determine lowest total costs. Determine the shipments in order to minimize the total transportation model. Finds location of distribution center that minimizes total distribution costs. Overlay a coordinate system on a map showing existing locations.
