The main reasons for business location selection
Although location theory provides a theoretical basis for enterprise location selection, due to the large number of influencing factors, the usual comparison and selection methods are difficult to solve the problem well. Next, please enjoy the main reasons for business location selection that I have collected and compiled online. The main reasons for enterprise location selection
(1) The enterprise's location selection strategy will mainly be affected by factors such as cost, market, and government. The operating costs of an enterprise are mainly composed of production costs, transportation costs, and transaction costs. The comprehensive effect of these costs affects the cost profit rate of the enterprise and affects the investment intention of the enterprise; market demand is the prerequisite for determining market supply, so The sales of products will guide companies' capital investment; and the government's service efficiency, transparency, and industrial policy guidance and restrictions will affect the regional development environment of the industry, thereby affecting the company's location decisions.
Specifically, since the costs of production requirements such as land, manpower, technology, information, and capital have different proportions in the total cost and have different importance, the company's location decision must also be based on The industry in which the enterprise is located and the link in the value chain in which the enterprise is located should consider different influencing factors and the difference in weight of each factor.
(2) In site selection decisions, some industries focus on cost factors. For example: the cost of some raw materials in the steel industry accounts for up to 75% of the total cost of steel production, and the purification and production process of silicon materials in the photovoltaic industry Huge energy consumption is required, so steel plants and silicon purification plants prefer locations with nearby sources of raw materials, fuel and power. Some labor-intensive manufacturing industries are also constantly moving to areas with abundant labor supply, high quality, low wages, and lower comprehensive freight costs.
In site selection decisions, some industries focus on market factors, such as some industries that have higher requirements for after-sales service, strong timeliness requirements, and a large proportion of transportation costs. As far as the warehousing and logistics industry is concerned, the location selection must take the demand for the core service items of the warehousing and logistics industry as a constraint, establish a location selection model, evaluate factors such as transportation convenience, and complete investment location selection.
In site selection decisions, some industries also need to pay attention to the influence of government factors. Taking the photovoltaic industry as an example, silicon material prices account for about half of the price structure of photovoltaic modules. Therefore, for the photovoltaic industry, the quality and cost of silicon materials directly affect the selling prices of photovoltaic modules and application products, affecting the market and profitability of enterprises.
(3) If enterprises in the same industry are in different links in the value chain, the focus of the enterprise's site selection assessment will also vary accordingly. The location selection of headquarters bases and R&D centers pays more attention to the influence of government factors, including government service levels, policy orientation, and the investment environment created, such as the abundance of talent and educational resources.
Addresses need to weigh cost, market, and government factors. With the development of the logistics industry and the rise of e-commerce, transportation costs and transaction costs have been reduced to a certain extent, while production costs vary greatly due to different regions. Big difference. Market prospects and market demands always guide the direction of enterprises. Government factors, together with cost and market factors, will affect the location selection of enterprises. Feng shui issues in enterprise location selection
Holistic system principle
Holistic system theory, as a complete science, was produced in this century; as a simple method, it fully Notice the wholeness of the environment. The principle of integrity is the general principle of Feng Shui, and other principles are subordinate to the principle of integrity. It is the basic point of modern Feng Shui to deal with the relationship between people and the environment based on the principle of Feng Shui.
The external environment of the building
When choosing a house, you need to avoid feng shui that affects the house, such as road collisions or corner collisions. In short, you should pay more attention to the surrounding environment when choosing a house. If there are obvious unfavorable Feng Shui phenomena, you should pay special attention to whether there are sharp objects around you, and avoid Feng Shui evil objects in the front and rear of the house.
The location of the house in the city
When choosing the location of the house in the city, it is generally better to apply it in a big city, so that you can maximize your luck. Generally, it is based on your destiny. Judging by the five elements of happiness and taboo, those who like wood are in the east, those who like gold are in the west, those who like water are in the north, and those who like earth are in the central area of wisdom.
Principle of adapting to local conditions
Principle of adapting to local conditions, that is, adopting a lifestyle suitable for nature based on the objectivity of the environment. China is a pragmatic country, and adapting measures to local conditions is a reflection of pragmatic thinking. Making people and buildings adapt to nature, returning to nature, returning to nature, and integrating nature and man. This is the true meaning of Feng Shui.
The principle of being close to mountains and rivers
Being close to mountains and rivers is one of the most basic principles of Feng Shui. Mountains are the skeleton of the earth, and waters are the source of vitality for all things. Without water, humans cannot survive. Almost all of the primitive tribes discovered by archeology were on the riverside terraces, which was consistent with the hunting, fishing, and picking economy at that time.
Principle of moderation
Moderation means just right, impartial, neither big nor small, neither high nor low, optimized as much as possible, close to perfection and beauty. Suitable banks and shopping malls can only achieve maximum benefits in downtown areas.
Principle of facing south
South-facing houses are easy to absorb sunlight. First, it can keep warm. In winter, the temperature in the south room is 1 to 2 degrees higher than that in the north room; second, it participates in the synthesis of vitamin D in the human body, and children who often spend time in the sun can prevent rickets; third, the ultraviolet rays in the sun have a bactericidal effect, especially It has a strong sterilizing effect on diseases transmitted through the respiratory tract; fourth, it can enhance human immune function. Factors to consider when choosing a company's location
1. Cost factors
Cost is the most important factor to consider when choosing a company's location. The cost of location includes both fixed costs and variable costs. Fixed costs are the costs that must be incurred to maintain the normal operation of the enterprise, such as the depreciation of factories and machinery and equipment of manufacturing enterprises. Therefore, due to different locations of enterprises, fixed costs will also have regional differences.
The variable costs of enterprise operations mainly include the value of production factors such as raw materials, fuel, and power. Since the prices of raw materials, fuel, and power will be different in different regions and locations, variable costs are also the cost of the enterprise. Important factors to consider when selecting a site.
2. Location conditions factors
Another factor in enterprise location selection is location conditions. Location conditions cover the region’s transportation convenience, labor resources, local policies, living conditions, etc. factor. For manufacturing companies, the transportation costs of products and raw materials account for a large proportion of the total costs. The quality of traffic conditions, the distance of transportation, the number of transportation links, transportation methods and transportation time all have a direct impact on transportation costs. Therefore, reasonable location selection can minimize transportation costs and provide the best services.
3. Labor factor
Labor cost is the most important part of business operating costs. Choosing areas with abundant labor and low prices will help reduce production and operating costs. For companies with high technological content, high-quality human resources are their biggest demand. Therefore, the supply of labor is an important condition when choosing a company location.
In summary, the location selection of an enterprise plays a decisive role in the success or failure of a business operation. More and more enterprises regard the location selection issue as the top priority in enterprise establishment, led by Tanichuan High-tech The innovative park has attracted the attention of many enterprises.
Different from traditional investment parks, Tanichuan Hi-Tech takes the development concept of high-end, high-quality and high-tech, and mainly attracts high-tech, high-profit high-quality projects. Due to their high technological content, these projects are not suitable for The demand for land is relatively small. Tanichuan High-tech Innovation Industrial Base has seized this point and controlled the land area for transfer to 3 to 15 acres. The transfer method is more flexible to fully meet the needs of this type of enterprises.