Fund location decisions taken by many American manufacturers in the last decade have led to disappointing results. These solutions were generally tactical, stopgap actions that led, at best, a short-lived benefit. Many firms have moved production overseas to take advantage of cost factor, only to find that the price advantage was fleeting, and that driving distance is introduced between production and other key groups (eg, customers, suppliers, development and sales) have been limited by their ability to compete . This article examines the impact that the location of the object is on the critical skills that determine a company's ability to compete. It addresses the shortcomings of the "tradition" approach to the location of the facility, which ignores the inner workings of the company, and establishes new capabilities-based approach that creates sustainable benefits by fostering the development and growth of a unique set of critical skills that are required by the strategy of the company, customers, and the competitive environment . "Hide
by Andrew D. Bartmess, Keith Cerny Source: California Management Review 26 pages. Publication Date: January 1, 1993. Prod. #: CMR040-PDF-ENG
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