Question

Find an example of a good and an example of a bad location decision.  Present each scenario, and discuss the implications of these location decisions (both good and bad) on the business.  

Answer 1

Find an example of a good and an example of a bad location decision. Present each scenario, and discuss the implications of these location decisions (both good and bad) on the business.  

Location plays a crucial role in setting up a business. Because an improper location leads to so many consequences. Location is given the first preference in setting up a business. As per a business concern finding a right location is more important for establishing a right business at right location. They are important not only to run a proper business but also will help to growth rapidly in these competitive world.

Every business need a good location to start a growth oriented business, but sometimes they failed to get the right location might lead to face issues. So most of the entrepreneurs select a right location to form a business that bring best results.

Good Location	Bad Location
Population demographics are more important for a business. Because most of the business is depends of course works on human traffic. Demographics can be anything like kind of people, profession ,life style etc. which are very important for a business	If a place is consists less human traffic its tough to carry a business that get results. No proper results can be estimated in less human traffic areas. Business cost can be more in terms of finding suppliers, consumers and logistic cost etc. will affect the business.
Competition is also important in finding location that what are your competitors and what feasibility to your business and what are the strategies needs to play against your competitors for right business.	Every business will have a competitors, without competitors there is no growth estimated on the business. When a bad location hardly find competitors and no chance of applying any strategies growth and traffic for business flow will be less
Business visibility is identified where there are more scope for variety of people. If a business is established in heavy traffic areas the visibility will be more in that location and more business can be estimated.	Every business first step is to create a visibility if a business is established in wrong location projecting the business will be very hard in that area or location needs to spend more to give visibility.
Surrounding amenities is also important, amenities provide access to your business	No amenities no business, a bad location with no basic amenities will fall down because there is no access to the location.
Good lactation also cost more for the business in terms of building cost, maintenance, security etc., but it will make good business. Though these factors are part of a business	A bad location may result with less cost for building rent and other amenities but cost more in terms of sales, security , logistics etc.
Good location will give more access or scope to increase production and improve logistics	A bad location always needs to spend more and more in terms of carrying resources for business needs
When it comes to personal factor will give easy to go the business from home where you can spend more time and there is no issues for other personal factors	Personal factor is also an effecting factor if a bad location is selected because it will take more time and time is more important for the business and other personal stuff

Examples:

Good location: Location win business is the first basic step in establishing a business. Because time is more important in business and availability of resources and human traffic are the main source for the business to have a good location.

Location will access easy to commute people and provide good amenities and other stuff for the people. Every business needs human traffic to purchase their products and service in the location.

Communication is very important to distribute products to different areas and cost less in terms of supplying and distribution and show interest to buy products and services because they have to spend less for communication.

Business will be more secured identify the target customer and feedback collection for the products and services will be easier and change of improvements and expansion for a good location

Bad Location: Location can be anything that is not good for business very few are considered as success in terms of selecting a bad business location. If a bad location is selected in terms of cost of building and reduce other costs .But finally when it comes to products sales and service, distribution and supply and logistics cost and business improvement will be less. There is no source for expansion

Materials and resources needs to be more costly in terms of communication .Less human traffic are identified and less business scope. Each and every factor will effect these business locations. For everything needs to spend more for logistics and security cost will be more if it’s a remote area.