Table of Contents
2.0 Part 1.
2.1 Analysis of the critical factors (demand side and supply side) that should be taken into consideration while making a location choice.
2.2 The discussion on how the decision regarding location choice impacts the goals and objectives of the business.
3.0 Part 2.
3.1 Discuss how the key stakeholders will be affected by the decision to move to a different location
3.2 Analyse the interest of different stakeholder groups.
3.3 Suggest a stakeholder engagement strategy that could be implemented in a similar situation.
Dyson Ltd is a technology company in the United Kingdom that was established by Sir James Dyson in 1991. It manufactures and designs home appliances such as air purifiers, vacuum cleaners, hand dryers, heaters, bladeless fans, hairdryers, and lights. The company decided to relocate the production of Dyson vacuums from Wiltshire to Malaysia in 2002 which was considered as a blow to UK manufacturing and impacted the employees being jobless (DYSON, 2020). This paper aims to demonstrate various things related to business investigations considering several factors like demand side and supply side for relocation choice of a business, and stakeholders how are impacted.
2.0 Part 1
2.1 Analysis of the critical factors (demand side and supply side) that should be taken into consideration while making a location choice
Demand sides of the business location impact the revenues making and customers services as betterment. These demand-side factors include:
Site suitability: Customer availability and crowding lead the business to relocate or establish new. Luxury hotels and restaurants require a nice and tranquil place and a neat environment (Chen et al., 2020).
Labor skills: The technical industry needs to consider the business location where available experts to contribute to the management and development as scientists and inventors (Felder, 2019).
Customer convenience: The best customer service and delivery needs offer to establish a business. The company ensures the customer’s services with respect to technology farms to ensure warranty and guarantee services (Chen et al., 2020).
Expansion potential: The business needs to expand as to customers’ demands and the branding and image of the business. The opportunity of establishing new shops may be temporary in tourist areas and people-crowded areas (Chen et al., 2020). The authority and management hire more employees to meet the huge customers as their popularity and values of products like Dyson’s home appliances attract people day by day increasingly.
Image: Image and popularity of the business by their well-chosen location and customer demands encourage the authority to choose a location new. The approach enables the company to grow better revenues and thus internationalization. Recent trends of Dyson’s business online have introduced the company to the whole world (DYSON, 2020). That application of their production establishment to Malaysia happened for the customer needs.
These factors help the business easily reach the suppliers and have the raw materials as to the instant needs of the production. The supply-side factors include:
Transport costs: the business chooses a location near to the production from sales. This helps to lessen the transport costs of the business ((Kennedy, 2019)). The Dyson technology changed their production location from Wiltshire to Malaysia for decreasing the transport costs as they run an international business and are popular in Southeast Asia (DYSON, 2020). The relocation business helps the business ensure supply chain uninterruptedly.
Land costs: This factor is important while the business new runs. The marketers consider the costs of the land where they intend to establish their business (Felder, 2019). Firstly, Dyson chose their production location at Malmesbury as suitability from the beginning land costs (DYSON, 2020).
Energy costs: Energy costs impact the define the product price. The energy costs vary from county to county and continent to continent as to the production and availability of energy like coals and electricity (Felder, 2019). As Dyson is energy consuming company, they needed to relocate their business for ensuring minimized energy costs (DYSON, 2020).
Community factors: the location of schools and hospitals ensure the demands of product and supply promotion to that locations. Dyson considers this technique………………………….