I Company Investment And Construction Plant Location Decision Research

With the development of domestic economy and market environment,the continuous deepening of the government’s opening policy to the outside world and the continuous improvement of the investment environment,more foreign group companies choose to develop the Chinese market,like setting up factories in China.Location decision is a very important link in the design of operation system,and it is also a typical multi-objective decision-making problem.Location decision not only involves the macro and micro environment of the site,but also has a far-reaching impact on the cost and efficiency of enterprise operation in the future.Company I(a global manufacturer of HVAC heating boiler)is the first brand in the HVAC industry in Italy.Since 1997,it has deeply cultivated the the Chinese market through trade for more than 20 years,and China has become one of its most important overseas markets.To further expand the scale of China’s market and consider COVID-19’s impact on the global supply chain,the headquarter of I company decided to build up its factory in China.Based on the research background of I company’s investment on new plant in China,this paper carries out in-depth research on the decision-making related to its location,so as to provide support for the company’s decision-making.After summarizing the relevant literature and theoretical methods at both home and abroad,this paper puts forward some basic ideas and framework.Using PEST analytical method to analyze the macro environment of investing and building factories in China such as political,economic,social and technological affects;Using SWOT analytical method,this paper analyzes from the dimensions of I company’s products,customer market and competitors,determines the strategic choice of investment,and provides corresponding environmental analysis for I company’s investment and plant construction in China.Aiming at economic maximization and input costs minimization,this paper identifies the influencing factors of I company’s plant location decision-making in China,and constructs the following factors on this basis: land resources,raw material supply,human resources,market access convenience,infrastructure,government policies and environmental factors The evaluation index system of location decision-making including industrial agglomeration factors and other comprehensive location influencing factors.Finally,using the constructed location decision evaluation model,for the proposed new manufacturing plant,through the location advantages,the three candidate cities of Suzhou,Changzhou and Wuxi that meet the future development needs of I company’s plant in China are preliminarily selected.The comprehensive factor scoring method and analytic hierarchy process are used to calculate and analyze the target location data.Finally,make the scheme decision of I company’s plant location in China.Through the research on the location decision of I company’s plant in China,this paper not only provides important support for the location decision of I company’s investment and plant in China,but also provides reference for other relevant investment and plant location.