1. A company is considering the relocation of its manufacturing plant and administrative offices from a small city in the Midwest to a similar-sized city in the South. Approximately 20 percent of the residents of the city are employed by the company, and many others are employed in businesses such as banks, personal services, restaurants, shopping centers, and supermarkets that would suffer a decline in business if the company decides to relocate. Does the company have a social responsibility to factor into its decision the impact that its move would have on the city? Explain your reasoning.
2. The owner of a fast-food franchise has exclusive rights to operate in a medium-sized metropolitan area. The owner currently has a single outlet open, which has proved to be very popular, and there are often waiting lines of customers. The owner is therefore considering opening one or more outlets in the area. What are the key factors that the owner should investigate before making a final decision? What trade-offs would there be in opening one additional site versus opening several additional sites?
3. Corruption and bribery are common in some countries. Would you avoid locating in such a country, or locate there and deal with it? If the latter, how would you deal with it?
4. Give three examples of unethical behavior involving location selection, and indicate which ethical principle is violated (see Chapter 1).