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Human Resource Essay

8374 words - 34 pages



1. FedEx chose Memphis, Tennessee, for its central location, or "hub," primarily because of the incentives offered by the city of Memphis and the state of Tennessee.
False (Global company profile, easy)

2. Generally, the objective of the location decision is to maximize the firm's profit.
False (The strategic importance of location, easy)

3. When selecting a location, service organizations typically focus on maximizing revenue, but minimizing transportation costs is also frequently an objective.
False (The strategic importance of location, easy)

4. When innovation replaces cost as a firm's focus for location ...view middle of the document...

Manufacturers may want to locate close to their customers, if the transportation of finished goods is expensive or difficult.
True (Factors that affect location decisions, moderate)

12. One reason for a firm locating near its competitors is the presence of a major resource it needs.
True (Factors that affect location decisions, moderate)

13. The graphic approach to location break-even analysis displays the range of volume over which each location is preferable.
True (Methods of evaluating location alternatives, moderate)
14. The factor-rating method can consider both tangible and intangible costs.
True (Methods of evaluating location alternatives, moderate)

15. The center-of-gravity method finds the location of a centralized facility, such as a distribution center, that will maximize the organization's revenue.
False (Methods of evaluating location alternatives, moderate)

16. The transportation model calculates an optimal shipping system between a central facility and several outlying customers.
False (Methods of evaluating location alternatives, moderate)

17. Service firms choose locations based, in part, on the revenue potential of a site.
True (Service location strategy, moderate)

18. Starbucks Coffee's approach to choosing new café locations is largely based on executive intuition, not sophisticated models and site selection technology.
False (Service location strategy, easy)

19. Labor cost and labor availability often drive the location decision in the telemarketing industry.
True (Service location strategy, moderate)

20. The location decisions of goods-producing firms will generally pay more attention to parking, access, and traffic counts than will service location decisions.
False (Service location strategy, moderate)

21. Industrial location decisions often assume that costs are relatively constant for a given area.
False (Service location strategy, moderate)

22. Starbucks Coffee's use of geocoded demographic and consumer data in site selection decisions is an example of the use of a Geographic Information System, or GIS.
True (Service location strategy, moderate)


23. FedEx chose Memphis, Tennessee, as its U.S. hub because
a. the city is in the center of the U.S., geographically
b. the airport has relatively few hours of bad weather closures
c. it needed a means to reach cities to which it did not have direct flights
d. the firm believed that a hub system was superior to traditional city-to-city flight scheduling
e. All of the above are true.
e (Global company profile, easy)

24. Which of the following statements regarding FedEx is true?
a. Its hub in Memphis, Tennessee, was selected because of its low cost.
b. Memphis, Tennessee, is the only hub in the company's global flight network.
c. FedEx believes the hub...

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