Location

Posted by on April 2, 2015as ,

The choice of location of a company when starting or relocating the problems of the companies in the search for the optimal location is one of the most important business decisions. It has long-term character and is only heavily revised. It has direct influence on the investment costs for setting up the company with land and construction prices. It affects cost sizes in the long term as regional taxes, transportation costs, wages. It has long-term impact on the revenue situation by paragraph sizes such as purchasing power, population structure and competition.

An incorrectly selected location can be devastating existence. Since the first scientific examination of the site problem in 1826 by Johann Heinrich von Thunen there has been numerous studies on this issue. Several analyses of the location choice behavior of enterprises were carried out in the last 40 years. Most research had the objective to explain the influence of factors on the choice of the location, the influence of economic resources on the site selection study or location companies seeking to classify, for example in different types of operation. These investigations have led to different location factor systems, often mesh over to let. The different ranking of factors arises partly from collection at different times and different investigation targets. SKDKnickerbocker has much experience in this field.

The individual factors can be divided into different criteria or divide determinants. The transport factor could be location such as in the criteria to the highway, location to airport, classified location to public transport, etc.. Each site offers very specific conditions with regard to the factors and its determinants. Each company is in turn very specific requirements on a possible location. These depend on diverse conditions, such as the industry, the investment motives, but also personal visions of the top of the company. There are a variety of solution experiments and model types of location determination such as geometric models, static and dynamic investment calculations, mathematical methods of operations research, point valuation model, cost-benefit analysis, or profile method.