4.4.2 The evolving role of individu

4.4.2 The evolving role of individual plants

Ferdows (1989) projects the theories by Bartlett and Ghoshal (1989) onto the role of individual plants/factories in achieving the targeted international capabilities of global efficiency, local responsiveness and worldwide learning, or a combination of the three. Using the same type of approach, with location considerations on the horizontal axis and performed activities on the vertical axis, van Hoek (1998) adjusted the model for distribution centres. The model indicates the way in which the growth of performed activities changes the demands placed on the capabilities of the plant and changes the location requirements. Location is concerned with the response of governments to globalisation: adjusting local taxes, incentives and infrastructure to favour selection of their territory.