Management Question

Management Question

Assessment 2 (Task B) Written Report Briefing Note

 Facility location decisions are of great importance to the business expansions and to the operations function. These involve all organizational functions internally and externally and are often made at the highest corporate level, including top management executives and the board of directors. Because of the construction and budget required, the lead time for location decisions can range from one to five years.

In the past decades, the globalization of many industries creates additional pressure to offshore: e.g., outsourcing locations outside the domestic market served by the firm. Choosing the right strategic location across the globe may result in reducing operational costs and increasing closeness to customers. The primary motive behind offshoring facilities is also to take advantage of economies of scale or entry to new markets etc. Some other beneficial factors include access to low-cost labor, material, and component to maximize profit, access to local technological resources, and proximity to markets for better customer services as shown in Figure 1.

Figure 1 Summary of major criteria and sub-factors affecting location decision * (MacCathy, 2003)

In practice, there is no one best location for a facility. Rather, there are several acceptable locations to choose from. One location may satisfy some factors, whereas another location may be better for others.

In this assessment, write a concise business report (~1800 words) to identify and/or determine critical factors affecting managerial decision making and subsequently evaluate and analyze appropriate facility

location, and/or multisite management decisions that numerous organizations face. For example, think about the business expansion, e.g., outsourcing facilities, opening a new retail shop, opening a new warehouse, etc.

Note: We encourage you to propose and suggest the selected organization to demonstrate a location decision for your case application. You can discuss this with your campus lecturers if needed. If you would like, you can choose one of the following organizations and/or sectors (as your case application) that you are interested in.

• Education Service Providers: e.g., CQUniversity
• Health Care Service Provider: e.g., The Royal Melbourne Hospital
• Internet Service Provider: e.g., Telstra, Optus
• Banking Service Provider: e.g., Commonwealth, Westpac
• Automotive Producer: e.g., Tesla, Toyota
• Fast food industry: e.g., Domino, McDonald
• Delivery Service: e.g., Australian Post, Linfox logistics
• Retail Supermarket Chain: e.g., Woolworth, Coles

You can prepare the OM report using the following suggested guideline:

• Conduct literature review and demonstrate your understanding of critical factors that affect location decisions.

Hint: Try to use and search our library database for literature to support your understanding of factors that influence location decisions within relevant industry sector.

• Succinctly evaluate and examine critical factors in location decision for your selected organisation and perform a decision-making selection technique (e.g., using weighted score method, using a load distance model, ).

Hint: e.g., opening a new branch (outlets) in CBD and/or regional areas – just a suggestion: – e.g., think about the factors that affect the location as shown in Figure 1 as an example. What do you think? Try to narrow down your focus, about 5 influential factors for discussion and apply the decision-making technique.

• Recommend how the organisation can response and overcome the unexpected demand fluctuations and

Hint: try to articulate practical implications, limitation and feasibility in relation to the location decisions, e.g., how does it impact on demand fluctuations and/or constraints, etc.

  Prepare details for your report

The business report represents a combination of your insight, observation, reflection, literature review and understanding of strategic location decisions. The following guidelines are as follows:

• Try to explore first about the critical factors that influence location decision to yield business operations’ competitiveness (as shown in Figure 1, including but not limited to)
• Select appropriate refereed sources (literature review) to frame and understand the key relationship of critical factors (e.g., try to narrow down at least 5 critical factors for discussion).
• Take stock of insights. Consider the evidence to show your understanding of facility decision making.

• Conduct a quantitative decision making (e.g., using a factor (weighted score) rating, using a load distance model, etc.) and make the
• What findings do you reach when gathering the insights and evidence from refereed sources and/or quantitative analyses? (e.g., practical implications, limitations, and feasibility in relation to the location decisions and how to cope with demand fluctuation, ?)
• You may include tables/figures/charts if needed for Part (a), (b) and (c)
• You should include at least 10 references and no more than 50 references in your report. All sources must be highly credible and fully referenced using the APA referencing
• The summary, table of contents, reference list and appendices are excluded from a report’s word count.
• Use MS word to write your report and submit your assessment online using Assessment 2 Task B link in Moodle, on or before the due
• Please note that the Turnitin Plagiarism Software in Moodle will check all submissions – we will recommend you to write the report in your own
• If you have any concerns, please directly contact your campus
• Assessment Criteria:

Your report analysis, recommendations and presentation will be assessed according to the following criteria:

• Demonstrated understanding of operations management concepts that are related to the questions posed: 20%
• Able to evaluate and articulate practical implications, feasibility, justification, and limitation: 20%
• Critical evaluation and integration of relevant academic and literature to provide theoretical and practical aspects. Insights from a minimum of 10 academic journal articles must be incorporated in your critical analysis: 20%
• Articulate appropriate and well-structured, concise and clear expression of operations management arguments in terms of theoretical and practical elements: 20%
• Provide a clear flow of thought throughout the business report, evidenced by succinct Executive Summary, Introduction, and Conclusion: 10%
• Adherence to APA Reference format: 5%
• Clarity of written expression, grammar, spelling: 5%

Report length 1800-words (penalty of 1% per 100-words that exceed the maximum 1980-words). However, the summary, table of contents, reference list and appendices are excluded from a report’s word count.

Submissions must be in Report format using Word with 1.5 line spacing and Times Roman 12-point font. Late submissions will also be penalised at the rate of “five percent of the total marks available for the assessment each calendar day (full or part) it is overdue” (Policy: Assessment of Coursework section 3.2.4)

* MacCarthy, B.L. and Atthirawong, W. (2003) “Factors affecting location decisions in international operations – a Delphi study”. International Journal of Operations & Production Management, Vol. 23, No. 7. pp. 794-818.

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