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?).