Go East!
En fallstudie av lokaliseringsbeslutet vid offshoring
This paper aims to determine what is decisive for localisation of production units when a company engages in offshoring. By performing a case study on Electrolux and comparing the results with theoretical literature we discuss the implications for manufacturing companies in general. To facilitate a structured analysis we have developed a model dividing the localisation decision into five perspectives and four geographical levels. We have found that the determinants of localisation vary depending on the geographical level of the decision process. Since all geographical levels are interconnected, the analysis needed for a decision on all levels simultaneously is very comprehensive. Therefore, the decision process needs to be divided into steps. Two natural steps have emerged from our empirical study, where the first aims to generate a number of potential alternatives on the higher geographical levels, whereas the second step concerns the lower levels and is of a more evaluating nature. Furthermore, we have found that cost-associated factors are important on all geographical levels of the decision process. These factors are dominant on the higher levels but are complemented on the lower levels with factors determining if production is feasible from an implementation- and risk perspective. Finally, we believe that the motive for relocating production affects the determinants of localisation.