However it would mean that it will be far from its

This preview shows page 3 - 4 out of 4 pages.

However, it would mean that it will be far from its customers. Thus, organizations have to balance the costs faced and the number of customers that they are able to sell to. Proximity to Competitors Usually, when major resources are found, organizations will tend to locate to that area, even if they are close to the competitors, which is referred to as clustering. The pro 3
6.3 – ASSIGNMENT: LOCATION DECISIONS (PLG1) about being in that area is that the amount of resources is high and easily obtain, however, the organization faces a risk of being overthrown by surrounding competitors or lack of resources due to other competitors taking it up. Recommendation Dyson’s market is mainly around the Asia region with its manufacturing plant mainly in Malaysia. Thus, it would be beneficial for Dyson to the Asia region, more specifically Singapore. With incentives and benefits provided by the government and access to resources here, Dyson will be able to get hold of innovators and engineers in the Asia region, especially with their new electric car project coming up. In this case, Dyson considers the proximity to market, suppliers, and competitors. By setting up a headquarter in Singapore, it is close to the market region, which is Asia. It is close to the suppliers as well, since Broadcom, a United States semiconductor company, has its global headquarters in Singapore. In terms of tangible cost, it depends on the government’s incentive and benefits, potentially the rates offered to them is reasonable that allows Dyson to decide to relocate to Singapore. However, in term of intangible cost, the quality of education and the people’s attitude towards Dyson is positive, thus, it would beneficial for Dyson to relocate to Singapore. In conclusion, relocating Dyson’s headquarters to Singapore is a good choice since it is close to its manufacturing plant and quality resources are available. In addition, it is close to its market to allow better facilitation in terms of products inquiries, sales, and marketing. 4

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture