SOLVED

Section 1Â Â The Strategic Importance of Location 1) FedEx chose Memphis, Tennessee, for its central location, or “hub,” primarily because of the incentives offered by the city of Memphis and the state of Tennessee. 2) FedEx chose Memphis, Tennessee, as its U.S. hub because: A) the city is in the center of the United States, geographically. B) the airport has relatively few hours of bad weather closures. C) it needed a means to reach cities to which it did not have direct flights. D) the firm believed that a hub system was superior to traditional city-to-city flight scheduling. E) All of the above are true. 3) Which of the following statements regarding FedEx is TRUE? A) Its hub in Memphis, Tennessee, was selected because of its low cost. B) Memphis, Tennessee, is the only hub in the company’s global flight network. C) FedEx believes the hub system helps reduce mishandling and delays due to better controls. D) FedEx uses a hub system in the United States, but a city-to-city network in other countries. E) Memphis is FedEx’s only hub airport in the United States. 4) Industrial location analysis typically attempts to: A) minimize costs. B) maximize sales. C) focus more on human resources. D) avoid countries with strict environmental regulations. E) ignore exchange rates and currency risks. 5) A location decision for an appliance manufacturer would tend to have what type of focus? A) cost focus B) focus on finding very highly skilled technicians C) revenue focus D) environmental focus E) education focus 6) A location decision for a traditional department store (e.g., Macy’s) would tend to have what type of focus? A) cost focus B) labor focus C) revenue focus D) environmental focus E) education focus 7) As described in the book Aerotropolis, nowadays location decisions worldwide are often being based on what? A) rivers B) rail hubs C) interstate highways D) ports E) airports 8) FedEx schedules its aircraft using a(n) ________ system, which it credits with reducing package mishandling and delay in transit. 9) Why does FedEx use a central hub airline network, rather than a “point-to-point” network? Describe FedEx’s approach to choosing its superhub. 10) State the fundamental objective of a firm’s location strategy. How is this basic objective carried out by industrial or goods-producing firms; how does that differ for service firms?