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LOCATION
The choice of location is one of the key factors that influences the success of a business.
Location Factors
Location Factors
Nature of the product Proximity to sources of raw materials Availability of labor Nearness to markets Nearness to transportation Nearness to the source of power Proximity to firms in smaller fields
To a certain extent, this factor helps determine where the plant should be located. This is so since each product requires a combination of raw materials, workers, machines, and distribution system if it is to be marketed successfully.
Nearness to raw materials is a primary factor if the materials are perishable, if they are of such bulk that they are expensive to transport, or their weight can be substantially reduced by processing.
Availability of labor
The labor requirements of the process of production are also another important factor to consider. While doubtless it goes without saying that a fully automated industry can locate just about anywhere, however, if many workers are required to run the machines, the availability and adequancy of a given number of skilled workers would be very necessary.
Nearness to markets
Some businesses fail because they were out of the beaten path. That is the reason why in the case of book stores, they are generally located near if not within the university belt.
Nearness to transportation
If the business is one that requires continued transportation, either of raw materials in or of finished products out, or of both, then the convenience of transportation facilities exert a profound impact on the economical conduct of the business through its good location.
Since power is an indispensable resource to the operation of any plant or industry, it follows that the companys proximity to its source is a major advantage that will redound to its benefit. (e.g. electricity and water)
Competitive industry already in the area may at first seem to be a drawback, but there are benefits derived from such a situation.
In a separate building but near to if not adjacent to the factory building itself; and
In an office building far removed from the factory building.
In selecting s site for the use of office, a number of important factors must be considered.
PURPOSE.
The purpose for which the office is intended is a limiting factor to the choice of location. Thus, location should be take into account not only the interests of the company but also those of its employees, customers, suppliers or servicemen if conditions permit.
OWN or LEASE.
The issue of own or lease is a problem of finance. Financing by business enterprises ordinarily has the purpose of acquiring additional assets. It is not essential, however, to purchase assets in order to use them. They may be rented instead, and payments for their use are then distributed over the period during which the services of the assets are being provided.
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OFFICE LAYOUT