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Location of a Business

Location of a Business


Inspired, In-Spirit Publishing 2015

Virtual vs. Brick in a Global Economy

The physical location of a business, in today’s global environment, still matters significantly. Physical locations, have the advantage of the same globalization opportunities, as virtual businesses. This is via technology with the addition of a physical presence that establishes credibility and trust with its clientele and employees.

Michael Porter in his book, The Competitive Advantage of Nations, makes an excellent point regarding the location paradox. He states, that because everything can be accessed from a distance, some of the smartest people mistakenly feel that location no longer matters (Porter, 1990).

According to an article, in the business section of the New York Times, “It is hard to define what physical proximity provides that virtual networks lack. But some people suggest that it boils down to opportunities to build trust” (Berlin, 2009).

Many companies hinge on establishing a rapport with their consumers or clients. It becomes difficult to do that utilizing only technology. There are so many people who prefer to talk to a human being or speak with someone in person when a problem arises. Also, think about how many millions of dollars, companies spend on building the morale of their employees.

The article goes on to explain that despite social networking such as FaceBook and LinkedIn, places like New York and California have not lost their allure. Talent and talent seekers still flock to these areas in order to become innovators or benefit from innovation. Mr. Speiser, a serial entrepreneur, who was interviewed in this article is quoted saying, “The important element of cultural immersion is hard to replicate online...In spite of everything technology could do, there is really no replacement for personal contact and face to face relationships when it comes to building companies...” (Berlin, 2009).

Companies are built by people and their experience, not computers. The computers and technology serve to simply enhance the talent of the people establishing or running the company. Technology does not always properly foster relationships between employees and/or customers.

While competing in the global economy, companies would fare better when making decisions regarding the internationalization process, by meeting the need for local orientation and for integration in that environment. “Firms integrating a high need for both local orientation and organizational integration should strive for a transnational strategy” (Wong-MingJi).

There can be serious barriers that proximity and location will minimize. Managers and executives can make better decisions and create better strategies when a physical presence is available. An example of this can be seen in Draper Fisher Juverston.

Draper Fisher Juverston, a Venture Capitalist Firm, have offices in China, India, and other countries. Their founding partner, Tim Draper, affirms that a local presence in other countries is important for the evaluation of start -up prospects and supporting the company as they grow. (Berlin, 2009).

While technology, especially MIS, is capable of evaluating the start up prospects or supporting the growth of a company, increasing morale, or expressing passion among employees or customers, and growth is done more efficiently face to face.

In addition, businesses can best serve their consumers via an online or brick and mortar location from a biblical worldview by:

  • Establishing strong core values of the company

  • Aligning them with biblical values

  • Posting them in obvious areas of the website or company paraphernalia.

This reinforces not just biblical values, but the values of most families. It allows the consumers to know what the company stands for. Companies, can also take part in focused philanthropic donations, depending on their industry, seeking to care for those who are in the most dire need. A great starting point, can begin with their employees first, and moving out to their local communities. Even virtual companies are licensed in a particular geographical area and could start in that particular community providing philanthropic donations and assistance.

Many companies are listed on a website known as the Faith Driven Consumer, where information is posted regarding where each listed company stands from a biblical worldview point. This particular site lists how they align themselves with biblical values and what initiatives have been set that support those biblical values.


Berlin, L. (2009, June 14). Location, Location: It Still Pays to Be Near. New York Times. Retrieved from

Wong-MingJi, D. (2013). Globalization. Retrieved from

Porter, M. (1990). Competitive Advantage of Nations.

ERIN N. SIMON is a writer, blogger, and visionary in raising the conscious level within the African American Community. One of her passions is to create a Black Media that truly matters, is promotable, and shared with as many people as possible. In 2013, She and her husband started Inspired, In-Spirit Ministries where they have a real estate arm in Detroit Michigan. They have recently started a Publishing Company called Inspired, In-Spirit Publishing which have three published books on their shelves; Interruption: Shae's Search, Interruption: Interlude & The Series Finale Interruption: Alter Ego. Her husband has a company known as GS Investments in which financial freedom is gained one investment at a time. She currently resides in Florida with her husband and three handsome sons...

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