In this paper we are going to give an in-depth perspective on the subjects of location decision, clusters and corporate social responsibility. First, we will address the location decision subject. Second, we will discuss clusters and different cluster types. Last, we will review the corporate social responsibility subject. After giving an in-depth perspective on the three subjects, we will discuss the relationship between these different topics.
Location Decision
Location decision is an important strategic decision that must be considered by a firm. It is important because the location strategy could affect the ability of the firm to reach it consumer, to produce in economic scale, or even to get access to the resource they needs. Location decision could also be able to give the firm a competitive advantage, because of transfer of knowledge, innovation, specialisation, and complementariness.
In choosing a country, there are two main dimensions that usually be considered. Those two main dimensions are country competitiveness and also risk of the country. The country competitiveness usually is divided into two main categories, which are the market competitiveness and also the industry competitiveness. A firm should able to assess those categories to find out in which location or in which country they should operate to maximize their opportunity and profits and minimize their risks and costs.
Country Opportunity
Assessing the market opportunity for a country means that we assessing the potential demand that available in a country. The variables that take into account for this assessment are the growth of the market, the size of the market, and also the quality of the demand that exist on the market in a certain country. This market assessment will define whether it is worth or not to start a business in that country, will the firm have a good demand or not, and will that demand able to generate profit for the firm or not.
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