Strategic Decision Making in Location
Enterprises seek to answer four main questions concerning strategic
decision making; what to produce or sell, in what quantity, how and
where? The first two questions are related to the economic strategy
of the firm, mostly dependent on markets (demand) and the panning of
production. The third question underlines the technological and labor
strategy related to the inputs. The fourth is the spatial strategy that
set the spatial division of production. Those questions are interdependent.
For instance, the choice of a location (where?) is linked to the nature
of a product (what to produce?) and its scale of production (in what
quantity?) and the required inputs (how?).