Business Location Decisions (Expired)

STR420 Business Location Decisions (Expired)

  • Topics



    • Globalisation and the spatial division of labour
    • Location conditions and location factors
    • Minimum cost location, maximum profit location
    • Importance of markets, resources and communication infrastructure
    • Urban landscapes and location
    • Location preferences and decision processes
    • Corporate strategy and the location problem
    • Differences in locating manufacturing and service companies
    • Location of entrepreneurial and small and medium-sized enterprises (SMEs)
    • Multinational corporation (MNC) and international multi-locations
    • Location of production systems
    • Agglomeration economics/clustering

  • Learning outcome

    Learning outcome

    The course gives insights into factors influencing business location decisions, into changes in the ranking of the location factors over time, across sectors, by function, and by company size. In addition to dealing with location decisions taken by single businesses, the course also presents key findings of the rich literature on companies seeking improved results through an integration of location into business strategy. We will devote time to considering the role of information, knowledge and innovation, and the question of whether location near a "technopole" or "cluster" is a significant advantage.

    Students successfully completing the course:

    will know:

    • the basic approaches to classic and modern location theory (non-technical)
    • which factors influence location decisions in retailing, manufacturing, office development
    • how a "knowledge-based economy" influences business location

    will have general competence in:

    • understanding why and how location is an integrated part of strategic decisions of the firm
    • understanding the organization and methods used to select an "optimal" location/site

    will have the skills to:

    • analyse the social and economic mechanisms behind spatial agglomeration and the clustering of specific industries
    • analyse how location influences the production of knowledge and innovation

  • Teaching


    The course is taught as a combination of lectures, one excursion, cases, seminars and debates.

    Assistance from supervisor in group-based term paper work.

  • Recommended prerequisites

    Recommended prerequisites


  • Required prerequisites

    Required prerequisites


  • Requirements for course approval

    Requirements for course approval

    • Attendance is mandatory for 75% of the meetings
    • Take active part in the class discussions, presentations, debates etc.
    • Write and present a term paper, preferably a group paper, to be accepted before the final exam

  • Assessment


    • Three hours written examination
    • Term paper

    Grading based on written exam paper (50 %), and term paper (50 %)

  • Grading Scale

    Grading Scale


  • Computer tools

    Computer tools

    Computer with Internet access, e-mail, presentation program (e.g. PowerPoint) and extensive use of Its learning.

  • Semester



  • Literature


    We will use a combination of chapters from text books, professional journal articles and four cases.

    Most of the literature will be available at the course web site or accessed through the NHH library. A few cases must be purchased.


ECTS Credits
Teaching language

Course responsible


Eirik Vatne