Companies do not have to establish an office or manufacturing Location in each country they enter. They call license, Franchise, or export to foreign markets or they can serve a larger region from one country. But there are many reasons why a company might choose to establish a location in a foreign country.
The criteria for choosing an office/manufacturing location are different from the criteria for entering a foreign market Rather than focusing on cost alone, companies should consider both qualitative and quantitative factors. Two key qualitative factor are workforce quality and company strategy. Workforce quality in important because it is often difficult to find workers whit the specific skills, abilities, and experience that a company needs to run its business Workforce quality is one reason that many companies doing business in Europe Locate their customer call centers in the Netherlands. Workers in the Netherlands are the most linguistically gifted in Europe, with 73 percent speaking two Languages, 44 percent speaking three Languages and 12 percent peaking more than tree. Of course, with employee who speak several languages, call center located in the Netherland can handle calls form more counties and generally employ 30 to 50 percent fewer employees than those located in other parts of Europe.
A company’s strategy is also important when choosing a location. For example, a company pursuing a low-cost transportation, and low-cost labor. A company pursuing a differentiation strategy (typically a higher-priced, better producer or service) may need access to high-quality materials and a highly skilled and educated work force. Quantitative factors such and transportation and labor costs should also be considered when choosing an office/manufacturing location.
Companies do not have to establish an office or manufacturing Location in each country they enter. They call license, Franchise, or export to foreign markets or they can serve a larger region from one country. But there are many reasons why a company might choose to establish a location in a foreign country. The criteria for choosing an office/manufacturing location are different from the criteria for entering a foreign market Rather than focusing on cost alone, companies should consider both qualitative and quantitative factors. Two key qualitative factor are workforce quality and company strategy. Workforce quality in important because it is often difficult to find workers whit the specific skills, abilities, and experience that a company needs to run its business Workforce quality is one reason that many companies doing business in Europe Locate their customer call centers in the Netherlands. Workers in the Netherlands are the most linguistically gifted in Europe, with 73 percent speaking two Languages, 44 percent speaking three Languages and 12 percent peaking more than tree. Of course, with employee who speak several languages, call center located in the Netherland can handle calls form more counties and generally employ 30 to 50 percent fewer employees than those located in other parts of Europe. A company’s strategy is also important when choosing a location. For example, a company pursuing a low-cost transportation, and low-cost labor. A company pursuing a differentiation strategy (typically a higher-priced, better producer or service) may need access to high-quality materials and a highly skilled and educated work force. Quantitative factors such and transportation and labor costs should also be considered when choosing an office/manufacturing location.
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