Logistics Location Decisions Management Essay Paper

Logistics Location Decisions
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Companies are continuously looking at options that best cut costs and optimally increase their income and competition while remaining close to their suppliers. It is, however, difficult to attain all these needs hence the need for strategic location planning. Often overlooked is the proactive nature of the market environment. This article focuses on taxation advantages of electronic components relocation to Houston Texas and the role market research before deciding to move.
The cost of doing business in Houston is one of the motivating factors for relocation. Texas understands the need for stability of a business and provides friendly business taxes especially for new businesses. It is one of the states with no state, corporation or personal tax, which in turn makes the cost of running a business lower than in other states. The cost-effective tax structure makes the town the best relocation centre for an electronics components company to expand their footprints. Personal taxes on income are also ranked among the lowest in the nation trickling down to the cost of labour. Personnel will not have to cough exuberant amounts to cover their tax reports leading to a sustainable wage range. Besides the pay, the low taxes attract people from all corners to live and work in the city and they create a pool of labour to outsource from (Scholes, et, al. 2014). The company will have all its human resource demands met during the recruitment process. 
The tax incentives issued by the state target new, expanding or relocating companies wishing to set up shop in the town. Such partnerships are valid as they help identify potential economic incentives that best sell to the relocating company and tap into optimizing their potential. The government steps into ...