Typical Criteria Used When Making Decision Regarding a New Location

Location is the place where a business premise is situated or established. Making a decision on a region to set up a new enterprise can be a difficult task. Whatever the enterprise, there are numerous factors that play an essential role in determining a new location.Advertising We will write a custom assessment sample on Typical Criteria Used When Making Decision Regarding a New Location specifically for you for only $16.05 $11/page Learn More First, labor should be considered in terms of availability of skilled workers, their number and cost involved in procuring it. This is crucial as production should not be delayed. This factor is of high weight (Khanna 120) Supply of raw materials is the next factor to consider. Enterprises should be set up in area where there is quality supply of raw materials at reasonable cost; for example, the pottery industry should be located near river banks as it requires large quantity of clay to be produced therefore they should be set up near suppliers of raw materials (Kathleen 221). This will assist in reducing cost of transporting the materials and making sure that supplies are delivered on time. This factor is of medium weight as it is more crucial in manufacturing businesses. Proximity to the market is considered in terms of closeness to the target market. For instance, a product which targets young people should be situated where there is adequate population of the youth. For example, setting up a music store near student community like University of New York will provide the business with a ready market (Khanna 187). This factor is of high weight. Infrastructures, such as water, quality roads, rails and proximity to key airports, are also to be taken into account. This will help to minimize cost of transporting raw materials, labour and ready goods to the market (Talloo 57). Government assistance is the next issue to be considered. Government may offer incentives, such as loans, grants, or ta x incentives to businesses that are set up in certain designated areas. For example, in the USA, founders of Pacific Hotel were offered tax incentives in order to restore the historic building for the current use (Kathleen 124). Thus the premises set up in those designated regions gain from incentives given in those areas. This factor is of low weight because there are only few designated areas where such assistance is offered.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Local community considerations are also important as they focus on the local population and their preferences, while deciding on new locations for an enterprise (Talloo 59). For example, it is disadvantageous to the business to set up a cloth manufacturing company specializing in making Muslim hijab in New York. Under such a scenario, there will be a low demand for this produce as there are relatively not many Musl ims among the local population, thus this company will lack ready market for its clothes. This factor is of medium weight. Availability of land should also be considered, while setting up new premise. This is crucial as the organization may consider on expansion for raising the buildings, such as warehouses, garages, stores or other facilities (Kathleen 136). This factor carries medium weight. Environmental impact and effluent disposal should be considered, when coming up with a decision on new locations. For example, companies which emit poisonous substances should not be located near residential areas. This will help to avoid negative influence on the health of the residents as well as bringing suits against the company Khanna 189). This factor is of high weight. In conclusion, geographical location has a strong influence on the success of any new enterprise, and care must be exercised in making the decision on new locations by evaluating the above-mentioned factors. Works Cited K athleen, Allen. Entrepreneurship for Dummies. USA: Libraries Unlimited, 2005. Print. Khanna, Ravi. Production and Operations Management. India: PHI Learning Pvt. Ltd, 2007. PrintAdvertising We will write a custom assessment sample on Typical Criteria Used When Making Decision Regarding a New Location specifically for you for only $16.05 $11/page Learn More Talloo, Thelma. Business Organization and Management. India: Tata McGraw-Hill Education, 2007. Print. This assessment on Typical Criteria Used When Making Decision Regarding a New Location was written and submitted by user Korbin Banks to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.