respond post


Base on the post, What can you add to their analysis? Do you think there is a better location for their business? What other factors may be of concern when this specific business chooses a location?

Please responded two post and each one at less a Paragraph for responded

Post #1:
For a company or a factory, to maximize the economic benefits, it is necessary to select a
suitable location. There are many factors which affect the selection of location for a company,
including labor productivity; exchange rates and currency risk; costs; political risk, values, and
culture; proximity to markets; proximity to suppliers; proximity to competitors (clustering). On
July 19, 2008, the first Apple Store in China was set up in Sanlitun in Beijing. Apple is the
leading technology company all over the world, and China is the largest consumer country all
over the world. Therefore, the selection of location of the first Apple Store is so important to
both Apple Inc. and Chinese customers. Sanlitun is an area which is only about 1 mile away
from the inner city in Beijing. Therefore, there are many visitors and residents around here. It
meets the requirement of proximity to markets. The purchasing power of these visitors and
residents is very strong. Although the operation cost may be very high, the profits could cover
the costs without any problem. In addition, there are a few electronics sellers in Sanlitun. So
the Apple Store in Sanlitun could face few competition pressure from other sellers and brands.
And in such a bustling area, it is very easy to attract customers, no matter whether they know
or don’t know Apple. It is also a great way to advertise the products of Apple.
Post #2:
When operating a real estate business, location is a very significant factor which decides
the benefits and efficiency of a company. Heizer, Render, and Munson (2017) list 8 major
factors which may affect the decisions of selecting locations, including: (1) Globalization; (2)
Labor productivity; (3) Exchange rates and currency risk; (4) Costs; (5) Political risk, values,
and culture; (6) Proximity to markets; (7) Proximity to suppliers; (8) Proximity to competitors
(clustering). Use the factory of BMW in Leipzig as an example. Many automobile
manufacturers are shifting the production to some eastern European countries with low cost.
But BMW decided to set up the factory in Leipzig, instead of Czech, which surprised many
industry analysts. But compared with the existing factories of BMW, the factory in Leipzig has
the following advantages. Labor productivity: The labor force flexibility of Leipzig factory is
much higher than other factories. And all workers speak German, which improves the
communication efficiency and saves the cost of translation. In addition, the local unemployment
rate is approximately 22 percent. This factory handled the unemployment problem partly, which
could enhance the work enthusiasm of workers. Costs: The wage level in Leipzig is close to the
average level. Therefore, labor cost is not a disadvantage any more. And the expressway
network near the factory is well developed and this factory is near the center of the expressway
network. This also reduces the transportation cost. Proximity to suppliers: The factory in
Leipzig of BMW is close to the existing factories of BMW. What’s more, it is also close to the
suppliers of BMW. Proximity to competitors (clustering): Actually, in Leipzig, there are more
and more automobile manufacturers enter Leipzig to set up factories. This forms industrial
cluster, which raises efficiency of scale of economy.

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