Web Site

Economy-point.org



» Economics » Management economics » Enterprise location


Page modified: Friday, June 23, 2006 20:29:10

Location criteria

In the following individual factors are described. Since there are specific factors for many industries, this enumerating is complete in no case.

Infrastructure

A very good traffic-technical binding of an enterprise is desirable in each case. There is thereby however conflicting aims since buildings and surfaces, which are in a well opened situation, buy more expensively to rent also at the same time or are. For example office surfaces are in direct neighbourhood of a remote station in each case expensive, as such, which lie off large traffic routes.

In the industriellen range well opened freight airports are a positive enterprise location factor due to the global production concatenation, if he plays a role for the procurement or the sale of goods. Something similar concerns goods stations or ports. Which form of the infrastructure and/or which combination of the plants is needed, depends strongly on the kind of the creation of value chain of the enterprise.

Clustering

A factor for the place of an enterprise or an enterprise plant, always meaning, will be the integration in cluster. Try cluster, where the creation of value chain is distributed on several enterprises (therefore it a chain of suppliers and a final product manufacturer), to create synergies. In cluster is e.g. tried to arrange optimal the product development as well as suppliers. A cluster gives long-term security to recent and new approaching down taking. It is inserted into the business planning and increases the soil quality of the enterprise.

Job market

Likewise importantly for an enterprise the presence of possible employees is natural, without which an enterprise cannot work. Generally it can be said that high unemployment in a region lowers the wages, which an enterprise must pay.

Another substantial factor job market is the degree of the training. Whether an enterprise more value puts on academically trained work takers, or whom would like to pay as lowest a wages at a location as possible, depends again strongly on the creation of value chain at the location. As is the case for the infrastructure here conflicting aims result.

Prestige

Some locations have essentially an important prestige value. For example it is to be led for banks global working essential in Frankfurt/Main or New York town center an address, even if this does not work due to from high rents and operating cost profitably.

Ecology

An intact environment is generally more important, is the more highly the employees of an enterprise trained. Air and water pollution affect very discouraging the coworkers, in particular if the enterprise carries a partial debt to it.

Some industries, like the biotechnology or microelectronics, put high value on clean air, because strongly loaded air increases the costs of the air cleaning of the pure areas.

Proximity to the sales market

In the modern (market-focused) marketing and management teachings it becomes generally accepted again that it is not meaningful in each case, by new enterprise locations in other regions, productions to shift (keyword Offshoring). If one stops production at the main market by at short notice more favorable locations in other countries, it can quite happen that the enterprise experiences a collapse in sales. It harms the external effect of an enterprise, if it at its chief market not when an adequate component economic circulation is felt. On a long-term basis therefore an enterprise location does not have to be in a labour costs-more favorable country necessarily the optimal solution.

In the discussion around the location Germany does not play an insignificant role. There is too high not necessarily the labour costs in Germany, but strictly speaking with many export-oriented enterprises the customers in other place. Economicalally this loss of the location value represents the costs of the export surplus of a country.

State

The state is likewise a not neglecting location factor. In like far it an enterprise location directly or indirectly (tax saving) subsidized, is frequently even the most decisive reason for a location decision. Likewise importantly that the state can guarantee a security, continuing of the location is ensured. In addition receiving an internal order or also the corruption fight belongs. A further important point is the speed and calculableness as well as the expenditure for public licensing procedures.

Climate

One of the criteria for a suitable location is the climate. It does not play however equally for all forms of business organization a role. In particular for enterprises, which are attached to agricultural productions, or even agrarian enterprises are, plays climate a main role. See for this the following table:

Climate and industrielle choice of location
Climatic sizeFavorably for
Low air temperatureChocolate factories, pharmaceutical industry, breweries, cheese factories, sausage goods manufacturers, stockroom for food, beer, wines
Air humidity highlyWoll and cotton spinning mills and - weaving mills, cheese factories
Air humidity lowChocolate, sweet goods, paste food factories, enterprises of the fine-mechanical-optical and electric industry, enamelled wire manufacturer, mechanical engineering, fur goods production
Air purity highlyFilm factories, chemical-pharmaceutical enterprises, air liquefaction plants, enterprises for the production of food and luxuries, high-quality papers, electronic elements and fine-mechanical-optical precision devices
strong air movementViscose rayon fibrous material, cellulose, color production; Enterprises of the chemical industry, dairies, cheese factories, Bonbonkochereien
Nebula libertyChocolate and sweet goods industry, film factories and chemical industry
Extreme one Schwankungendes climatefor all branches of industry rather unfavorably
Strongly bent terrainAt the water: Hydro-electric power plants

Specific examples

  • Factory for the production of explosives: a factory for the production of explosives must have a minimum distance of populated areas and other industrial plants for safety reasons. The value of this distance depends on the kind and quantity of the finished explosive. By suitable measures such as protection barriers the necessary safety margin can be perhaps made smaller, why factories lie for the production of explosives frequently in shut down quarries.
  • Thermal power station: even flood-safe place at a river with as favorable a binding to the high-voltage transmission system as possible. Binding to the traction network is nearly always necessary. Since frequently high buildings must be established, a certain minimum distance is necessary for airfields. With brown coal beaconed power stations are established only in close proximity to conveyor plants for brown coal, since the hygroscopic brown coal cannot be transported economically over large distances.
  • Hydro-electric power plant: Location at a river with strong downward gradient. Location criteria more sharply than with thermal power station
  • Electrodes for high voltage direct current transmission. Area of high soil conductivity. As far as possible away of cables and pipings (stray current corrosion)
  • Transmitting plant for UKW: optimal location high mountain before one level. Since frequently high buildings must be established, a certain minimum distance is necessary for airfields. The transmitting station Wendelstein is optimal in this regard.
  • Transmitting plant for VLF, LW and MW: Location in an area of high soil conductivity, for example in a river valley a former moorland or at the sea. Since frequently high buildings must be established, a certain minimum distance is necessary for airfields. The sending and places Soelvesborg for the MW-transmitter of the Swedish foreign service and Kalundborg for a medium-wave transmitter of the Danish broadcast are optimally selected under these aspects
  • Rocket launching site: as free a ballistic curve over uninhabited area as possible, mostly large water surfaces. For Satellitenstarts a location at the equator with free firing direction is eastward optimally also along that because of the less Sprit is used than for example at the north pole. An even area facilitates the plant of starting places and traffic routes, a damp climate is unfavorable, since it favours to corrosion.

Articles in category "Enterprise location [2 / 3]"

We found here 274 articles.

A

» Analysis of effects
» Assumption
» Authority (organization)
» Available capital
» Action knowledge

B

» Broker formula
» Buyer
» Business startup
» Business startup consultation
» Business model

C

» Capital stock
» Change management
» Creation of value
» Competition advantage
» Company management

D

» Date loyalty
» DATA Envelopment analysis
» Dealbreaker
» Delegation
» Differentiation strategy

E

» Expenses
» Enterprise ethics
» Enterprise location
» Enterprise assumption
» Entrepreneur wages

F

» Fast success
» Fiscal charges ratio
» Free of charge
» Factoring
» Fertigungsdienstleister

G

» Growth rate
» Goods paper
» GmbH-Geschsfr-Haftung
» Graduate management Admission test
» General trading conditions

H

» Horizontal market

I

» Inefficiency
» Insurance principle
» Idea identification
» Industrial company teachings
» Institutional Buy Out

J

» John on algorithm
» Joint hypothesis

K

» Knowledge balance
» Knowledge map
» Komparativer competition advantage
» Konsumgut
» Kano model

L

» Location factor
» Limitation
» Liquidity
» Low Balling
» Legal department

M

» Managerial policy
» Management audit
» Management Buy in
» Management Buy Out
» Margin

N

» Narrow brook magazine for economical research
» Nachfassen
» Network organization
» Neuro economics
» Nominal capital

O

» Official development Assistance
» Offshoring
» On-line PR
» Operate leasing
» Organization (economics)

P

» Procedural model
» Public management economics
» Plague analysis
» PFITA
» PIMS concept

R

» Retoure
» Risk capital
» Real objective
» Reorganization (economics)
» Re-use degree

S

» Sale lease baking
» Slim management
» Shared services
» Situation analysis
» Specified condition

T

» Tax ratio
» Time ton market
» Totally Cost OF Ownership
» Transaction cost theory
» Triage (BWL)

U

» Unternehmenskultur
» User
» Utilization
» Utilization chain

W

» White knight
» Werthaltigkeitstest
» Weather derivative
» Weather risk
» Working group Interim management Provider

V

» VALUE reporting
» Value analysis
» Value border product

Y

» Yield management

Related Websites

We found here 3 related websites.

Page cached: Wednesday, July 5, 2006 14:41:55
Valid XHTML 1.0!  Valid CSS!

Page copy protected against web site content infringement by Copyscape