While the Location of the Corporate Headquarters Is Less Important

question 77

Essay

While the location of the corporate headquarters is less important and may reflect historical factors, a firm must develop a clear home base for competing in each of its strategically distinct businesses. What role does a home base assume in forming a global strategy and what factors should be considered in choosing a location? Under what conditions might a firm create a home base for a different product line in another country?

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from revenue.

Earnings

The amount of profit that a company generates during a specific period, often reported as net income.

Profit

The financial gain achieved when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the activity.

Accounting

The systematic process of recording, analyzing, and interpreting financial information.