Question

A location analysis for Cook Controls, a small manufacturer of parts for high-technology cable systems, has been narrowed down to four locations. Cook will need to consider various factors, including cost, resource availability, and proximity to suppliers and customers, in order to make an informed decision. What factors should Cook Controls consider when selecting the final location for its facility?

Answer 1

Cook Controls should consider several factors when selecting a final location for its facility, including cost, resource availability, proximity to suppliers and customers, quality of transportation and power networks, taxes, competence and honesty of local government, and environmental regulations.

Step-by-step explanation:

When selecting the final location for its facility, Cook Controls should consider various factors:

• Cost: The costs of labour and financial capital are important considerations.
• Resource Availability: Cook should ensure that the location is close to reliable suppliers of the inputs they need.
• Proximity to Suppliers and Customers: Cook needs to be close to both suppliers and customers to minimize transportation costs.
• Transportation, Communications, and Power Networks: Cook should assess the quality of these networks in the potential locations.
• Taxes: The level of taxes in each location should be considered.
• Competence and Honesty of Local Government: Cook should evaluate the local government to ensure reliability and ease of doing business.
• Environmental Regulations: While environmental costs are usually a small percentage of overall costs, Cook should still consider the impact of these regulations.