Chapter 8 Internet activities

Overview
For some global factory decisions an analysis of the opportunities, costs, and risks associated with conducting business at the city level will be required. Especially for those decisions involving sales activities or the relocation or expansion of some or all of the functions of headquarters. This can be problematic because countries seldom report data at municipal or city level.

 

Activity description
Amazon recently decided to develop a second headquarter office in North America. The initial intention was to invest $5 billion in construction and create 50 000 new “high-paying jobs”. To find the perfect location Amazon invited North American cities and economic development organisations to submit a proposal based on eight specific criteria. It received and evaluated 238 proposals and eventually decided on two locations.

Go to the websites and consider the criteria Amazon used to evaluate the proposals on and their reasoning behind the final decision.

 

Consider:

  • Why did Amazon follow a competitive bidding process?
  • What are the likely advantages of following a competitive bidding process?
  • What are the likely criticisms of following a competitive bidding process?
  • What role did the financial incentives made by the cities played in the final decision?

 

Visit the following websites:
https://qz.com/1071832/amazons-hq2-what-it-wants-for-its-massive-new-north-american-headquarters/

https://www.wsj.com/articles/amazon-hq2-announcement-lic-crystal-city-nashville-1542121089

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