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Nov 24, 2024

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docx

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An organization like Apple can initiate a facilities location or a relocation project for different reasons depending on their current and future goals. These can include “labor and workforce issues, the desire to reach new markets, the need to upgrade facilities or equipment, the desire to lower costs or increase cash flow, and considerations about quality of life” (Entrepreneur staff, n.d.). The stakeholders that would be affected by this decision of the organization’s location would be their employees, customers and stockholders. Employees would be affected because if a facility is relocated it may be out of the way for them which can cause them to not be able to work for the organization. Stockholders are affected because it can affect their profitability as a possible move can create unnecessary risks. Customers are affected because it can make the location farther and out of the way for them as well as affect shipping times and their satisfaction. Some pros of international locations would be “cost savings and market expansion” and cons would be “risk exposure and logistical challenges” (Pivot International, 2023). Some Pros to domestic locations would be “easier communication, high labor standards, faster fulfillment, and reduced shipping costs” and some cons would be “rarely cost competitive and limited production” (Pivot International, 2023).   Entrepreneur Staff. (n.d.).   Relocation - entrepreneur small business encyclopedia . Entrepreneur.   https://www.entrepreneur.com/encyclopedia/relocation#:~:text= Businesses%20commonly%20cite%20five%20main,considerations%20about %20quality%20of%20life.   Pivot International. (2023, May 23).   Pros and cons: International vs. Domestic Manufacturing .   https://www.pivotint.com/blog/pros-and-cons-international-vs- domestic-manufacturing/   REPLY TJ
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