The core referred to by Bai Wen is the branch of an enterprise. The selection of the core position of an enterprise may seem relatively easy at first glance, but it's not actually that simple. There is a certain scientific basis involved. The location of the core plays a crucial role in the development of tasks. A well-chosen location can have a significant promoting effect; conversely, it may hinder task execution.
When it comes to selecting the core location, many people might assume that setting up the core in the place where the company produces or outputs its products would suffice. Why bother with choosing a specific location? Isn't that redundant? However, as we enter the 21st century, the situation has changed. First, market competition has intensified. Second, market changes are happening faster than ever. Third, ideas and concepts are evolving rapidly. These changes have prompted many companies to reconsider the selection of their core locations.
Why is the selection of the core location so important? Choosing the right core location offers the following benefits:
1. Better utilization of various resources: For example, human resources - the structure of human resources differs between rural and urban areas. High-quality personnel tend to congregate in large and medium-sized cities or key towns, while smaller towns may be relatively lacking. Public relations resources such as government agencies, organizations, and media outlets are more abundant in larger cities and key towns. Information resources, like global networks, are richer and more timely in major cities and key towns. If a company selects its core location wisely, it can better leverage these resources.
2. Enhanced responsiveness and influence for both the company and its products: Different cities have varying levels of influence and reach. Selecting different cities as the core will endow the company with different degrees of responsiveness and influence.
3. Better alignment with the market: Establishing the core in major cities or key towns allows the company to more fully observe the market, understand consumers, serve consumers, and conveniently study and formulate strategies and tactics, enabling the company’s products to better align with market demands.
4. Cost reduction: Major cities and key towns offer convenient transportation, comfortable accommodations, and complete facilities, making it easier for corporate staff to travel and receive clients, which from a certain perspective, helps reduce costs.
Choosing an appropriate location for the company's core enables the enterprise to better keep pace with the times, integrate into the market, adapt to the market, lead the market, and better carry out its work.
How should the location of the company's core be selected? Currently, many companies have set up their cores in places like Beijing, Shanghai, and Guangzhou. Some have chosen different provincial capitals, prefecture-level cities, inland towns, or even production sites. At first glance, it might seem chaotic, but it’s not. The selection of the core location still follows scientific principles and rules. It’s not necessary to rush into this decision; instead, it should be based on the company's stage of development, market positioning, and business characteristics. Medium-sized enterprises in development tend to set their cores in provincial capitals, prefecture-level cities, or key towns. Larger enterprises prefer to establish their cores in Beijing, Shanghai, or Guangzhou. Companies targeting the national market often choose Beijing, Shanghai, or Guangzhou, while those focusing on regional markets prefer provincial capitals, prefecture-level cities, or key towns. Some foreign trade-oriented enterprises favor locations near import stations or border trade towns, while others with strong industry-specific needs prefer product-oriented key towns.
The selection of the core location must be combined with actual circumstances and shouldn’t be blindly copied. Some companies are already in suitable positions, so there’s no need to relocate their cores unnecessarily. It’s worth noting that especially for companies located in remote areas, those with convenient transportation, and those aiming to grow stronger and larger under certain conditions, careful consideration should be given to whether the current core location is appropriate. Thoughtfully selecting the core location can help improve the company's operations, thereby contributing to making the company truly stronger and larger.
Serial explanation source: (Editor: Procurement Editor)