{"id":10011,"date":"2021-11-19T07:07:46","date_gmt":"2021-11-19T12:07:46","guid":{"rendered":"https:\/\/flevy.com\/blog\/?p=10011"},"modified":"2021-11-24T10:49:56","modified_gmt":"2021-11-24T15:49:56","slug":"5cs-of-site-selection","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/5cs-of-site-selection\/","title":{"rendered":"5Cs of Site Selection"},"content":{"rendered":"<p><img decoding=\"async\" class=\"alignright size-medium wp-image-10017\" src=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2021\/11\/Stock-Image-2-5Cs-of-Site-Selection-300x199.jpg\" alt=\"\" width=\"300\" height=\"199\" srcset=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2021\/11\/Stock-Image-2-5Cs-of-Site-Selection-300x199.jpg 300w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2021\/11\/Stock-Image-2-5Cs-of-Site-Selection-768x510.jpg 768w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2021\/11\/Stock-Image-2-5Cs-of-Site-Selection-1024x680.jpg 1024w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>Site Selection is the practice of choosing a new <a href=\"https:\/\/flevy.com\/business-toolkit\/facility-management\">facility location<\/a>. It involves measuring the needs of a new project against the merits of potential locations. The practice became popular during the 20<sup>th<\/sup> century, as operations of many organizations expanded to new geographies on a national and international scale.<\/p>\n<p>Selection of sites has been known to have taken place due to factors such as:<\/p>\n<ul>\n<li>Best required skills being available in a particular city.<\/li>\n<li>Setting up in an off-the-trail location because all operations will be managed remotely.<\/li>\n<li>Following the trend to set up offices and facilities in a particular city because every company is doing so.<\/li>\n<li>Factory facilities of the company being close-by.<\/li>\n<li>Top boss living in the vicinity.<\/li>\n<li>Person tasked with choosing the site liking the area for a particular feature such as restaurants and the like.<\/li>\n<\/ul>\n<p>Making such significant long-term choices based on haphazard and indifferent reasons is a blunder.\u00a0 The consequences of the mistake are exacerbated when such sites are being selected in emerging markets.<\/p>\n<p>Site selection, in particular, for R&amp;D, Design, and Engineering, warrants a more serious approach than is given to it.\u00a0 Employing a formalized selection method aids in eliminating sentiment in the concluding decision. \u00a0The orderly selection procedure is also valuable in conveying the ultimate decision to all involved.\u00a0 Selection criteria and their priority should be agreed to in advance for removal of any partiality from the Site Selection process.<\/p>\n<p>Site Selection, especially when being done in emerging markets, has to be conducted while considering at least 5 factors\u2014or the <a href=\"https:\/\/flevy.com\/browse\/flevypro\/5-cs-of-site-selection-5959\">5 Cs of Site Selection<\/a>.\u00a0 Companies ought to identify which among the 5 factors they deem significant and prioritize the factors accordingly:<\/p>\n<ol>\n<li><strong>Cost <\/strong><\/li>\n<li><strong>Capacity <\/strong><\/li>\n<li><strong>Capability <\/strong><\/li>\n<li><strong>Communications <\/strong><\/li>\n<li><strong>Culture<\/strong><\/li>\n<\/ol>\n<p><a href=\"https:\/\/flevy.com\/browse\/flevypro\/5-cs-of-site-selection-5959\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-10015\" src=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2021\/11\/Slide-Deck-image-5Cs-of-site-selection.png\" alt=\"\" width=\"970\" height=\"728\" srcset=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2021\/11\/Slide-Deck-image-5Cs-of-site-selection.png 970w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2021\/11\/Slide-Deck-image-5Cs-of-site-selection-300x225.png 300w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2021\/11\/Slide-Deck-image-5Cs-of-site-selection-768x576.png 768w\" sizes=\"(max-width: 970px) 100vw, 970px\" \/><\/a><\/p>\n<p>Selecting a site in light of the set priority order, the company has to take into consideration the characteristics of the site in the present time as well as in 3 to 5 years.<\/p>\n<p>Let us delve a little deeper into some of the factors.<\/p>\n<h2><strong>Cost <\/strong><\/h2>\n<p>Ideally, <a href=\"https:\/\/flevy.com\/business-toolkit\/cost-reduction\">Cost Reduction<\/a> should not be the only factor influencing site selection decisions.\u00a0 If Cost factor is predominant in the decision, then the local standard of living and the changes there to, have to be taken into consideration.\u00a0 Costs in setting up a site include items such as:<\/p>\n<ul>\n<li>Buying or leasing land.<\/li>\n<li>Office equipment costs.<\/li>\n<li>Communication infrastructure and operations costs.<\/li>\n<li>IT infrastructure costs.<\/li>\n<li><a href=\"https:\/\/flevy.com\/business-toolkit\/employee-training\">Employee Training<\/a> costs.<\/li>\n<\/ul>\n<p>Companies basing their decisions exclusively on Cost factor rather than what suits their requirements end up paying more than estimated.<\/p>\n<h2><strong>Capability<\/strong><\/h2>\n<p><a href=\"https:\/\/flevy.com\/business-toolkit\/capability-maturity-model\">Capability<\/a> is the ability of the site under consideration to provide the necessary infrastructure, resources, and the work\/ operational environment required by the company.\u00a0 Capability includes existence of exclusive skills and expertise that a company explicitly needs.<\/p>\n<p>Also advantageous to capability are nearby R&amp;D, design, testing, and prototyping centers setup by foreign and local companies.<strong>\u00a0<\/strong><\/p>\n<h2><strong>Capacity<\/strong><\/h2>\n<p>Capacity refers to the abundance of qualified skill available on the site under consideration.\u00a0 Capacity comes into play when the company needs rapid scaling up of its operations.<strong>\u00a0<\/strong><\/p>\n<p>Although the 5 Cs are of extreme significance, there is an additional factor that cannot be ignored\u2014the Customer.\u00a0 Recent advances in technology and communication have further empowered the Customer.\u00a0 The result is that more organizations are seeking to focus on <a href=\"https:\/\/flevy.com\/browse\/stream\/customer-centric-design\">Customer-centric Design<\/a>.<\/p>\n<p>Interested in learning more about 5 Cs of Site Selection?\u00a0 You\u00a0can download\u00a0<a href=\"https:\/\/flevy.com\/browse\/flevypro\/5-cs-of-site-selection-5959\">an editable PowerPoint on <strong>5 Cs of Site Selection<\/strong> here\u00a0<\/a>on the\u00a0<a href=\"https:\/\/flevy.com\/browse\">Flevy documents marketplace<\/a>.<\/p>\n<h2>Do You Find Value in This Framework?<\/h2>\n<p>You can download in-depth presentations on this and hundreds of similar business frameworks from the\u00a0<a href=\"https:\/\/flevy.com\/pro\/library\">FlevyPro Library<\/a>.\u00a0\u00a0<a href=\"https:\/\/flevy.com\/pro\">FlevyPro<\/a>\u00a0is trusted and utilized by 1000s of management consultants and corporate executives.\u00a0 Here\u2019s what some have to say:<\/p>\n<blockquote><p>\u201cMy FlevyPro subscription provides me with the most popular frameworks and decks in demand in today\u2019s market.\u00a0 They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions.\u00a0 I strongly recommend FlevyPro to any consultant serious about success.\u201d<\/p>\n<p>\u2013 Bill Branson, Founder at Strategic Business Architects<\/p><\/blockquote>\n<blockquote><p>\u201cAs a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power.\u00a0 For us, it is an invaluable resource to increase our impact and value.\u201d<\/p>\n<p>\u2013 David Coloma, Consulting Area Manager at Cynertia Consulting<\/p><\/blockquote>\n<blockquote><p>\u201cFlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients.\u00a0 In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over!\u00a0 The quality of the decks available allows me to punch way above my weight \u2013 it\u2019s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.\u201d<\/p>\n<p>\u2013 Roderick Cameron, Founding Partner at SGFE Ltd<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Site Selection is the practice of choosing a new facility location. It involves measuring the needs of a new project against the merits of potential locations. The practice became popular during the 20th century, as operations of many organizations expanded to new geographies on a national and international scale. Selection of sites has been known&hellip;&nbsp;<a href=\"https:\/\/flevy.com\/blog\/5cs-of-site-selection\/\" rel=\"bookmark\"><span class=\"screen-reader-text\">5Cs of Site Selection<\/span><\/a><\/p>\n","protected":false},"author":110,"featured_media":10017,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[82],"tags":[2744,2745,2748,2747,2749,2746,14,995,1683,2750,2743],"class_list":["post-10011","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-operations","tag-5cs","tag-5cs-of-site-selection","tag-capability","tag-capacity","tag-communications","tag-cost","tag-cost-reduction","tag-culture","tag-customer-centric-design","tag-employee-training","tag-site-selection"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/10011","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/110"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=10011"}],"version-history":[{"count":8,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/10011\/revisions"}],"predecessor-version":[{"id":10024,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/10011\/revisions\/10024"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/10017"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=10011"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=10011"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=10011"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}