Question

Some of the factors important when selecting a state in which to locate a business include Markets Labor; Taxes; Laws; Business climate; Population trends; Competition; Transportation.

1. What factors should a seafood processing plant, a beauty shop, and an exclusive jewelry store consider in choosing a location?

2.List factors for each type of business. What are the factors that are likely to impact your decision to select the location for your business?

Answer 1

• Factors for seafood processing plant:
  • The location should be closer to the sea to procure raw material easily and fresh.
  • The demand in the nearby market should be high.
  • Qualified labour should be easily available for the processing.
  • The environmental conditions should be favourable and shouldn't affect the inventory.
  • Enough space should be available for the establishment of the processing plant.
• Factors for a beauty shop:
  • The location should be easily accessible through roads and should have parking space.
  • The shop should be located in densely populated areas and should be closer to the retail business area most probably a mall etc..
  • The availability of space also needs to be evaluated according to the requirement of the shop.
  • Presence of local competition can also affect the location decision.
• Factors for an exclusive jewellery store:
  • The location should be near premium retail stores as it will reflect its exclusivity.
  • The location accessibility is not an issue as being speciality goods, customers won't hesitate to travel even if it is a little far.
  • As it is a jewellery store, the location shouldn't have security loopholes. Store owners will avoid establishing the store in insecure locations.
  • Store owners will also avoid establishing stores at economically backward areas.