Quite
remarkable that in Louw’s study
It
is quite remarkable that in Louw’s study the average number of location factors
mentioned per respondent varies considerably from one decision stage to the:
2.5 for the orientation phase 6.1 for the selection phase and 2.5 again for the
negotiation phase. Obviously, in the orientation phase the search is of a
superficial nature. Managers only pay attention to two packers and movers pune
and movers and packers pune
things the number of square meters that are available
rather logical in view of the importance of expansion space problem.
As relocation factor number one and the price
for which the location/ building is for sale or rent. In the selection phase a
much greater number of factors are considered. Again price is important but on
top that many spatial factors are now entering the scene, location/ situation
accessibility- for car as well as by public transport- parking and
possibilities for flexible use of space. In the third and final phase the
negotiations then focus again on one or two key issues of wich the price issue
always is predominant.
When asked by Louw in his interviews for an
ex- post evaluation the managers usually demonstrate satisfaction about the
outcome of the negotiations, but in two third of the cases they nevertheless
keep the feeling that they’ve had to compromise. Most of the compromises are
about the price and about the parking facilities.
Louw’s
process- oriented approach of firm relocation decisions had been followed up in
recent years by pen 1999, 2000. In a study based on an extensive enquiry among
over 1000 individual firms he considers relocation as one of six types of
location strategies. He finds that the average length of the decision making
process is much longer than often assumed on average 2 years and shows that the
number of stages in the decision process varies from a minimum of three till a
maximum of seven.
After
factor analysis Pen’s results suggest that the relocation process is triggered
by a combination of firm internal and external developments and not in the
first place by lack of space for expansion and accessibility per se. this is in
contrast to the dominant outcome based on answers from decision- makers on more
straightforward survey questions. Interestingly the importance of individual
factors prevails in the short three step decision processes while personal
considerations are more important in five phased processes Pen 2000, p. 23.
From the previous paragraphs we may conclude that still many things are not
know about the decision making process of firms in general and with regard to
firm relocation in particular.
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