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| Question | Answer |
| Who invented the classical industrial location theory? | Alfred Weber |
| production costs | associated with production in the factory |
| distribution costs | associated with transporting finished goods to markets and maintaining a sales force |
| assembly costs | associated with buying and transporting materials to the factory |
| what are the primary concerns of the classical indutrial location theory? | assembly costs |
| Homo economicus | Entrepreneurs and managers are rational, have perfect knowledge of the costs characterisitcs off all locations, and aim to maximise profits |
| Satisficers | do not have perfect knowledge so their perceptions of risks and opportunities are important, and they have variety of goals and not simply aim to maximise profits |
| Critique of location theory by behavioural geographers | 1. Location theory focused on abstract patterns of land use: real world applications? 2. Economic man unrealisitic: acitivities are the result of choice, calculations and chance, decision making process |
| Behavioural Approach | - search - Leraning - choice evaluation |
| Definition hard location factors | with quantifiable effects on the costs, revenues and profits of the enterprise |
| Definition soft location factors | with qualitative influences and indirect effects on businesses |
| Examples for hard location factors | - Flächenverfügbarkeit - Steuern - Kooperationsmöglichkeiten |
| examples for soft location factors | - Image als Wirtschaftsstandort - soziales Klima - Kulturangebot |
| Network Approach: Industrial districts | many enterprises comprising small firms, each specializing on a particular production activity --> reduce transaction costs and to achieve a higher degree of vertical and horizontal integration |
| what requires the network approach (industrial districts) between firms? | a small scale or batch production (Serienfertigung) |
| example for industrial networks | - baldwin locomotive production - subassembly suppliers - 40 day production schedules |
| which geographer developed typologies about industrial agglomerations? | Ann Markusen |
| Marshallian Industrial Districts | - high degree of horizontal and vertical integration - reliance on market mechanism for exchange - small firms; focus on a single function in the production chain - firms in the district highly competitive - Propinquity of firms --> skilled labour, exchange of informations |
| Hub and spoke Districts | - Transport erfolgt immer über einen Hub (Distributionszentrum) - vom Hub über die Spokes (Speichen) an die Endstellen (Filialien) - auch wenn Endstelle zu Endstelle kürzer wäre, werden hierdurch bessere Laderaumnutzungen erzielt |
| satillite platform districts | x |
| State anchored Indutrial districts | - Military base - prison complex - university town - research center |
| urbanisation economies | large cities offer locational advantages for firms |
| examples for locational advantages for firms | - an urban labour market - specialized suppliers of goods and services - a large local market - infrastructure to access a wide market beyond the the city |
| Agglomeration economies | advantages of the co-location of firms all in the same industry |
| advantages of the co-location of firms all in the same industry | specialised suppliers co-operation |
| on what did economic sociologist draw attention? | untraded interdependencies between firms make industrial districts work |
| which districts may develop as an innovative millieu? | districts out of untraded interdependencies |
| in what are firms embedded? | in local institutions (e.g. for worker training, labour regulations, work practices) |
| in what are entrepreneurs embedded? | in local social practices and institutions (e.g. church meetings, golf clubs) |
| what is a innovative milieu? | Manuel Castells, envisioned (vorgestellt) hot spots of innovations araising in industrial districts associated with converging (sich einander nährend, übereinstimmend) technologies at the start of an industrial life cycle |
| Spinn off firms (Bell labs) when and what were spun off Bell labs? | - in the post war era, electronics firms |
| Spinn off firms - what stimulated innovations? | - government contracts and funding |
| Clustering - who identifies local clusters? | Michael Porter, and other geographrers |
| Clustering | identify local clusters of related economic acitivity, to analyse their strengh and weaknesses, and to aid planning for regional development |
| who dominated world trade and production | - large industrial enterprises |
| what are the competitive advantages of the large industrial enterprises? | - Organisation and management - Economic of scale - transnational scope (Geltungsbereich) |
| on who have the large industrial enterprises effects? | - on other businesses (newcomers) |
| what were the effects from the large industrial enterprisis on other firms? | - imposing barriers to entry (Errichtung von Handelbarrieren) |
| Geographic outcomes of the business organisation | - localization of enlarge head office functions in large office complexes, often in metropolitan centres but despersal (Zerstreung) of production units which, nonetheless are co-ordinated - Specialisation of production withhin the corporation |
| who is the visible hand of the corporate planners? | - corporate governance structure |
| books from Alfred Chandler | - the visible hand - scale and scope |
| Scale and organisation - | - Integrated networks that allow for organisational economies, and require corporate managerialism - the best advantages derive from vertical integration - the new corporations take advantages of economics of scale and produce for national markets |
| International devision of labour | - deindustrialisation with TNCs investing in new manufacturing countries |
| the second industrial devide | - new industrial districts (the third Italy, firms specialised in loosly products, highly skilled labour, well paid workers) |
| global production networks | - Peter Dicken: large TNCs important in successful industrial clusters; act like lead enterprises in innovation, market development |
| Key aspects of this framework (Global production networks) | - network as a relational framework - network ethics - dialectical relationsships between firms and places |
| what is most important for Michael Porter, in competitive advantages for firms? | - linkages with other firms --> labour costs and organizational flexibility |
| classical production factors | - labour - capital - land - technology |
| Michaels Porters production factors | - Human capital - material resources - knowledge resources - capital resources - infrastructure |
| is Zara a pioneer of fast fashion? | yes |
| how much did of the production kept Zara in the industrialized core? | half of the production |
| as what was Zara considered? | as a exception of globalization |
| what is assocoiated with fast fashion? | - increased variety - fashionability |
| why were the international retailors of clothing considered to be thy key drivers of globalization of the clothing industry? | because of... - global sourcing - give jobs |
| Is Zara a exception anymore? | - some of the production chains now extended to PIC |
| what tilted the balance of competitive advantages towards firms in PIC? | the seminal change from ready-to-wear to fast fashion |
| defintion fast fashion | - short lead times - minimum production runs and rythmy - retailors are inspired by trends --> put on market immediately |
| why is an information structure with highly responsive communication channels important? | - to connect customers demand with the operations of design, procurement, production and distribution |
| what does fast fashion require? | - short development cycles - rapid prototyping - small batches - variety |
| why is a responsive supply chain needed? | to make sure that deliveries are frequent |
| does Zara has it's own factories? | yes |
| when did the firms from the PIC gained to competence to manufacture intricately worked, high-quality garments with the required flexibility? how became this obvious? | - in the 1990's - by the very well faked luxury goods from the chinese market |
| why was is an advantage for Zara to be late to market? | they were able to harness (nutzbar machen) the latest information technology |
| Into what and why was Zara forced? | - into vertical integration - because of the possible EU crack down |
| what was Zara's success? | - shopping was cheap, but didn't feel like it - shops were large, swish, centrally located - clothes could be mixed with other expensive pieces - spotted trends --> immediately on market |
| how was Zara's supply also called? | - rapid fire supply chain - vertically integrated dash |
| Zara were not only sales point, but also...? | eyes and ears |
| why did Zara not outsource every part of the companie? | - shipping to the Third World, you end up paying more because it destroys your flexibility - they could quickly cancel lines that did not sell - labour force in Portugal and Spain was cheap enough |
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