"The physical distance is irrelevant." I disagree.
As an example, when Xerox developed the first xerographic copying process that could be used in typical offices, its headquarters and manufacturing, marketing, and financing operations were all located in Rochester, New York. As the company grew, its leadership, which had an Ivy League business administration bias, thought it would be better to change the company headquarters to Stamford, Connecticut, nearer to the centers of finance, in order to help finance the larger copy machines Xerox was building. Thus, the headquarters were in Connecticut, while the manufacturing center remained in Rochester.
That was the beginning of Xerox going downhill, losing out to numerous other companies, especially for smaller size copiers. The company is splitting in two parts this year, further deemphasizing its original manufacturing prowess.
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