From the case analysis, it is found that the Regional Headquarters of Robert Bosch Power Tools faces challenges in terms of managing its geographically dispersed subsidiary units. These subsidiaries are complaining about the slow decision-making process, limited efficiency, and less know-how about the needs of their clients (Schmitt and Nell, 2021). It seems important for the company to think again about its approach toward the Blue Emerging Markets and set a regional headquarters. The decision about location investment must be made while considering these criteria - security, accessibility, and cost factor (Balbontin and Hensher, 2019). The best possible location choices for the company include Turkey, Russia, and Poland. However, it is important to evaluate these locations based on the abovementioned criteria.
Relocation decisions can increase the chance of being impacted by the criminal situation of a region, which could eventually impact the insurance premium along with the security steps that a company takes to keep the premises secure. Considering the possible choices for relocation, Turkey seems a safe country in terms of violence and criminal activities. It has recorded minimal rates of crime when compared with the other two sets. Such criteria can inform the case company to make an informed decision when it comes to relocating its regional offices.
The next measure is accessibility and it covers infrastructure, property rents, and motorway systems. Rental charges and purchase options are quite steep in areas with high density. It brings cost benefits when a company looks for town-based locations since routine business operations will not be disturbed by poor transportation systems. Also, if the company relies on a high client footfall, then it is essential to make sure that chosen location is easily accessed by cars, bus o even trains. These are some important considerations that are needed when deciding on relocation. Turkey seems a viable option since it has an improved network of roads and railways and can provide a better opportunity for Robert Bosch Power Tools to relocate its headquarters and tap into a small market.
The decision of relocating headquarters is often determined by the strategic purpose. One of the key goals usually is to minimize overall costs through low tax rates and overhead expenses. Repositioning of headquarter into a new region also facilitates an organizational realignment that enables officially separated departments or operations to exercise commonly used core processes. The offerings of financial motives and incentives from local and state governing bodies could play a great role in the decision to relocate. There are several regions including Turkey that are eager to extend such offerings and encourage foreign companies to relocate their operations within the host country. It helps in recognizing the ripple impact that such strategic moves could bring on the economy of a host nation. From the case analysis, it seems that Turkey is a viable choice for relocation because it carries geographical strength as well as political stability. It would be worthwhile if location investments are put into this country as it provides a secure environment along with growth opportunities for businesses. It is in the center of western and eastern societies and provides a rich diversity of different cultures of the world (Erdin & Ozkaya, 2020). Turkey provides a rich business environment and a deep pool of talented people. It has a worldwide market access because it lies at the centre of Asia and European zone.
ReferencesBalbontin, C. and Hensher, D.A., 2019. Firm-specific and location-specific drivers of business location and relocation decisions. Transport Reviews, 39(5), pp.569-588.
Erdin, C., & Ozkaya, G. 2020. Contribution of small and medium enterprises to economic development and quality of life in Turkey. Heliyon, 6(2), e03215.
Schmitt, J and Nell, P. 2021. Robert Bosch Power Tools: Regional Headquarters Structure for Eastern Europe and the Middle East (A). Ivy Publishing.
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