Business News Select | SMPost | Terms

Term: Satellite Operation

22 Nov 2015

DEFINITION of ‘Satellite Operation ‘
A small office in a different location from a company or government agency’s main office. Reasons for opening a satellite operation may include reaching an under-served area, expanding market share and lifestyle/quality of life factors for employees. Satellite operations can be used in all kinds of businesses, such as doctor’s offices, Department of Motor Vehicles offices, political offices and corporate offices.

BREAKING DOWN ‘Satellite Operation ‘
In deciding whether to establish a satellite operation, companies must consider factors such as the cost of renting and furnishing another office, the cost of hiring additional staff to work in that office, and whether existing employees will be burdened by the need to travel to and from the main office to the satellite operation.

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