Scientific paper abstract

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An organizations geographical location is one the main determinants for its competitiveness. It can contribute to or damage the process of value creation, even determine its success. Therefore, the choice of location is a decision on the strategic level. In the case of industries, the process involves large investments in facilities and capital goods. A flawed decision could cause high transportation costs, problems in the supply of inputs, damage to its competitive advantage, and financial loss. This thesis sought to identify the ideal location for a polyester film manufacturer in Brazil, which are currently nonexistent. Polyester films are main input for the flexible packaging industry. Moreover, the need for this research came from an importer of the product, where the author was an intern, who wanted to start manufacturing them in the country. After a thorough literature review on site location methods, the weighted scoring model presented itself as the most suitable for this study, mainly for its permission to use qualitative data. The first step of the model consisted in identifying which factors influence this type of decision; they are proximity to suppliers, proximity to clients, workforce quality, energy cost, transport infrastructure, business environment, and quality of life. Each factor received a particular weight based on their relative importance to the CEO of the company. With the use of the center of gravity technique, five potential alternatives where chosen: Joinville, Manaus, Rio de Janeiro, Recife, and São Paulo. The cities where then evaluated on the location factors previously determined, and given scores bases on their performance. A simple set of calculations could then find the overall performance of each location. In addition, a sensibility analysis created four different scenarios assigning different weights to the location factors. In all of the scenarios, the city of São Paulo received the highest score, indicating it as the ideal location for this type of industry. The main factors behind São Paulo’s performance are its proximity to clients, its skilled workforce, and its transport infrastructure.