Studied by 1 personQualitative factors
________: non measurable factors that may influence business decisions.
Optimal location
________: business location that gives the best combination of quantitative and qualitative factors.
Optimal location
business location that gives the best combination of quantitative and qualitative factors
Quantitative factors
measurable factors in financial terms and will have a direct impact on either the costs of a site or the revenues from it and its profitability
Qualitative factors
non measurable factors that may influence business decisions
Outsourcing
using another business (a "third party") to undertake a part of the production process rather than doing it within the business using the firm's own employees
Subcontracting
practice of assigning to another business (the subcontractor) part of a contract for example, a specialist activity that makes up part of construction contract
Offshoring
relocation of a business process done in one country to the same or another company in another country
Insourcing
reverse of outsourcing as it is undertaking a business function or process within the business rather than contracting it to another business
Inshoring
ending offshoring contracts with overseas suppliers and returning functions or processes to business operations in the home country
Optimal location
Business location that gives the best combination of quantitative and qualitative factors
Quantitative factors
Measurable factors in financial terms and will have a direct impact on either the costs of a site or the revenues from it and its profitability
Qualitative factors
Non measurable factors that may influence business decisions
Pull of the market; planning restrictions; external economies of scale; multi-site locations
4 other locational issues
Outsourcing
Using another business (a "third party") to undertake a part of the production process rather than doing it within the business using the firm's own employees
Subcontracting
Practice of assigning to another business (the subcontractor) part of a contract for example, a specialist a activity that makes up part of construction contract
Reduction and control of operating costs; increased flexibility; improved company focus; access to quality service/resources; freed-up internal resources
5 reasons for outsourcing
Loss of jobs within the business; quality issues; customer resistance; security
4 potential drawbacks to outsourcing and subcontracting
Offshoring
Relocation of a business process done in one country to the same or another company in another country
Language and other communication barriers; cultural differences; level of service concerns; supply-chain concerns; ethical considerations
5 potential limitations of offshoring
Insourcing
Reverse of outsourcing as it is undertaking a business function or process within the business rather than contracting it to another business
Inshoring
Ending offshoring contracts with overseas suppliers and returning functions or processes to business operations in the home country
Note
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