internal and external factors for a business to make a decision about moving location...?

Question

Hi,

Can you help me as i have to work out what internal and external factors a business has when deciding whether to move location or not.

Thanks

Answer 1

What's the cash-flow? Does it bring in lucrative volume of
projects or business ventures? It's common for offices to be
re-located to cut cost and to falicitate more business opportunities. Moreover, essentially, there's other factors to consider...i.e. the accessibilities of manpower, raw-materials
and customers flow.


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Answer 2

Essentially it all comes down to costs.

All other factors can be expressed in monetary terms ... for example :-

Retaining or replacing skilled workers - those you wish to retain can be offered moving allowances etc. - those you wish to replace can be offered Redundancy - in both cases the only issue is how much do you have to offer (in order to achieve the desired result) ?

Logistics - moving / replacing plant & equipment. Again it's simpley costs.

Legal issues (eg. planning permission) - to obtain necessary permits and permissions it may be necessary to offer to build eg. car parks or workers houses or other civic ammenaties (or, depending on the country of destination) simpley offer direct bribes .. again all a matter of costs.

Of course all these costs are balanced against the cost of staying where you are - typically the major cost is payroll followed by Tax (including local Tax's such as Council Tax).

In some cases a move may be forced by a changing political climate ... at one high-tech design Company I worked for the local council became 'anit-business' ... in addition to a doubling of Business Rates they closed off local streets and instituted 'residents parking only' zones in an effort to force the workforce to use public transport. The Company moved making about 100 local people redundant - the building was re-used as a warehouse employing about 15 people ... I guess the Council got the result it wanted ..

Answer 3

1 & 4