Question

A city mayor you know is interested in recruiting Amazon to build in their city but doesn't know what a company considers before choosing where to build a processing plant. She has hired you to help her and her city council understand what decision factors Amazon might consider before making its choice. Research how companies decide where to locate a facility, and then write a brief report identifying and explaining at least 8 decision factors Amazon might consider before choosing a city to locate their new headquarters.

Your report must be at least 350 words, professionally formatted and addressed to the city government, grammatically correct, and describing the 8 factors in your own words (no more than 2 short quotes, if necessary).

Answer 1

February 10, 2020

Mr Leonard Garnett

Vice President of Operations

Paris City Government

Dear Mr Leonard

Having a correct and authentic place to open any kind of business is the first and foremost thing that any company does. Facility location is the appropriate location for manufacturing works, will have access to customers, transport, workers, etc. It is a critical business strategy for any business to grow smoothly.

Companies decide where to locate a facility based on a few factors as follows -

• Cost - having a cost-effective area is the biggest concern that any business has. Included is the cost of buying or leasing land, office equipment, training, taxes, and infrastructure.
• Customer Proximity - It is always recommended, the facility locations should be selected closer to the customer to reduce the transportation cost and easy availability.
• Transportation - The problem of transportation is an important factor in locating a facility. The movement of material can consume a very high percentage of final cost to the customer.
• Labour supply and wages - Not only the labour force must be available, but it also must contain the skills required in a given manufacturing process.
• Climate - Climate greatly affects human efficiency and behaviour.

These are the few factors on which companies decide where to locate a facility.

Decision factors Amazon might consider before choosing a city to locate their new Headquarters -

1. Cost-Effective land
2. Skilful labours residing nearby to Headquarters.
3. Potential for growth
4. Demographic
5. Accessibility and Parking
6. Proximity to other businesses and services
7. Building's infrastructure
8. Competition

I look forward to discussing our recommendations with you and will be happy to meet you and your staff regarding our repot. and its exciting implications.

Sincerely

XYZ