Stratecation

Function: Noun
Pronunciation: /strat•e•kā’•shən\
Etymology: Business terminology blending strategy with location
Greek stratēgia generalship, from stratēgos
Date: 2008

Definition: The science and art of progressive business executives
to identify the geographic, economic, workforce, and lifestyle
characteristics of a community in order to locate or expand a
company to maximize competitive advantages for profitability.

 

Steps of Stratecation

Finding the right location to expand or relocate a company is always challenging.
As the definition implies, deploying a successful stratecation initiative is a delicate balance of science and art.

The Science of Stratecation is pinpointing specific columns on your company’s balance sheet where fixed and variable costs, as a result of geographic or environmental influences, are increasing at a rate higher than the profits.

The Art of Stratecation comes into play when executives find the right blend between a business friendly community and a desirable quality of life for their team.

Some factors that would indicate a need for Stratecation:

• Escalating cost of doing business in current location (labor, property costs, taxes and insurance)
• Escalating shipping costs (especially for international trade)
• Lack of skilled or trainable workforce