Due Thursday 7/17/14 – before midnight eastern time.
Unused/ Original. No copy-paste work!!
I need 2 critiques in regard to each of the essays below fitting the following reqs:
- What did you learn from your classmate’s posting?
- What additional questions do you have after reading the posting?
- What clarification do you need regarding the posting?
- What differences or similarities do you see between your posting and other classmates’ postings?
120 words min in each 1-3 paragraphs per essay
A fundamental aspect of this organization to its success is its ability to operate in a location that is advantageous in both a financial, as well as in the logistical aspect of conducting business. The company needs to ascertain several aspects of a site location and evaluate what the possible issues could be; both positive and negative in the eventual decision.
1. Available Facilities- There can be several variables to consider when it comes to facilities, and the first thing to consider is to evaluate where the market we are going to be geared toward is and do we have facilities in that location already. If we are to assume that this is a completely new market we need to consider how the market may fluctuate and whether it would be cost effective to lease a building or to purchase it. We also need to evaluate the amount of space that may be required for our operations, as well as any legal requirements to either lease the property or purchase it. When this is taken into consideration in the thought process we can rate at as a medium weight in terms of importance to the success of the company.
2. Logistics– This ties in with the placement of your facilities, and will have a large impact on the ability of the company to provide the items is being marketed to the public. This is high on the scale of importance to a business, as this aspect is the manner in which the business thrives; without the ability to get the product to the customer the business will not survive.
3. Labor costs– The “cost” of doing business not only includes the cost of logistics in regard to transportation costs, or to the cost of the facilities and other items, but includes the cost of labor. This is something that needs to be considered in the location; will the employees be able to meet the demands of the jobs (will they be able to complete the tasks required), also what is the cost in terms of benefits and other governmental incursions in the workplace. This is an aspect that is of high importance as this can cause the company to incur high costs and is a variable that is not consistent.
4. Regulations and Taxes-High tax rates and other regulations can make a profound impact on the locations that is picked. For example it would not be prudent to pick an area that has a high import or export tax rate as that would cut into the cost of the company’s profit. This aspect is of high importance to a company, as the issue of having high tax rates and restrictive regulations in both labor and workplace can have a negative effect on the business.
5. Environmental laws-Being able to operate freely with minimum impact to the daily operations of the business due to restrictive environmental laws is something to consider. This is not to say that the company should ignore local environmental regulations, however laws that are restrictive and curtail the operations of the company need to be considered, and would be something to think about in the thought process relative to location, but would rate as of minimal importance in the planning.
6. Free Trade zones. With the implementation of the North American Trade Agreement (NAFTA), as well as other international treaties give the ability to trade between locations, as well as move products more readily; this is of great importance to a company that is looking in its assessment for a location.
7. Local governmental incentives– Will the local government give the company a tax break, in its endeavor to locate to this new area? Often this happens as the local government is looking at the possibility of increasing the employment rate by having a business relocate to their locality. This is of low importance to a company; however is something that needs to be taken note of during the relocation process.
8. Services- What kind of services are there in order to assist the company when it locates to the new area? If the company attempts to sell certain items there may be a local store that can sell these items and enable us the company to save on high transportation costs. This is of a low importance to a company but is something that can be contemplated in the thought process.
When a business decides to change location, there are a number of decisions to make. Here are at least eight different criteria a business owner should consider before making their choice.
1. Image is very high up on the scale of importance. An owner should really look into the new location before they choose to move their business. The new area may offer a great deal for expansion, but would existing customers want to come to that location to do business? And, the owners must ask themselves if this location is the image they want the public to view them with.
2. Costs can increase with a new location if there are renovations. I would consider this a medium risk if the owner is fully aware of what they are getting their hands on. Some new locations will require a lot of work just to get started. All computer systems will need upgrading and the owners should look into zoning regulations. There are some areas where the owner’s type of business cannot be conducted.
3. Competition is another criteria to consider when relocating. Business owners should research the area to find their competition. This will let them know how much competition they will be up against and if the existing similar businesses are welcoming to newcomers. Locations often have many of the same type of businesses competing for business. A good question to ask yourself in this situation is whether or not the business has unique qualities that will make it stand out from the rest. This is high on the scale of importance.
4. Taxes would be a criteria high on the scale of importance. This goes along with costs, but can be just as spending as any renovations needed to get the business up and running. Looking into the state and property taxes is essential before making a final decision with a new location. It may be much more cost effective to look at other cities or states in order to cut down on tax costs.
5. Local markets are a medium to high on the scale of importance. It sounds good to get a completely new business in an area where there is little to no competition. This will have everything to do with the actual location to which the owner wants to have their business. A business owner who sells children’s clothing would not want their business to be located in an area where there is an abundance of senior citizens. They would choose a location where there are young families, daycares, and schools nearby or a downtown area.
6. Suppliers need to have easy access to a business’s location. This is high on the importance scale. They should be able to find the new business relatively easy and be able to make stops without any issues. Owners need to consider parking for their suppliers. Some suppliers bring large amounts of items and need bigger trucks to house this merchandise. They will need an area that is safe and legal to park their vehicle during their deliveries.
7. Safety is another criteria that is high on the importance scale. This means that the new location should be a safe place for workers to come and go from work without the worries of being in harm’s way. Owners should make sure that it is a relatively safe area and not filled with crime. Workers will not stay at a job or want a job where they will have to go to work in a dangerous location.
8. Employees will want the shortest commute to work. Consider the area of the new location with either existing employees or possible job candidates. They will not want a larger commute to get to their job and if they are good workers, they may seek employment elsewhere. Also, see if the area has good job candidates available that have the qualifications this business is looking for. This is of medium importance on the scale.