A Two‐stage Model for Structuring Global Facility Site Selection Decisions

Abstract

A critical concern for firms pursuing global expansion strategies involves facility site evaluation and selection. For expansion to be successful, corporations must identify countries and facility sites that offer a good fit with the firm′s overall corporate strategy. Unfortunately, little has been written to aid corporations in making these complex decisions. Presents a two‐stage model that combines the concepts of strategic management, the management science technique of goal programming, and micro computer technology to provide managers with a more effective and efficient method for evaluating global facility sites and making selection decisions. Extends the existing literature on corporate facility site evaluation by applying a computer optimization model to facility site acquisition in a way that has not been done before.