Due to globalization companies have to face growing competition, but at the same time they are also provided new opportunities by new markets. In this context the Kienbaum management consulting company carried out the “New company locations as a challenge to managers” study which is based on the experiences of 75 relocations over the past years.
85 percent of companies questioned said that having a clear strategy is a precondition for successful relocations. Another 77 percent stressed the importance of suitable managers being available abroad and 80 percent consider a good co-operation with local authorities to be particularly instrumental. However, the fact to which most importance is attached is the recruitment of suitable experts and executives.
In their choice of a new location many entrepreneurs are still giving away valuable potentials, says Mr Christian Koerber, who is the study´s project manager. “Business model, company organization and allocation of resources should be adapted to local conditions in a way such as to best use local resources. When determining the cost effectiveness of different locations the parameter to be compared is effective unit costs”.
77 percent of managers questioned consider their own relocation to be successful and 88 percent would take the same relocation decision again. Objectives with regard to cost cutting had been achieved by 79 percent and market potentials exploited optimally in the opinion of 55 percent of managers surveyed. Most important factors in the selection of new company sites are the overall economic development (according to 83 percent), availability of suitable personnel (67 percent), cost-efficiency of staff (76 percent) and nearness to clients (72 percent). Cultural differences have an effect on the performance orientation of 73 percent and on the quality concept of 55 percent of companies interviewed.
The complete report on the study´s findings is available free of charge from Kienbaum on request by telephone (+49 211 9659-263). 