Alex and Co-Owners' Business Decisions - Case Study Example

Information Introduction Location of a business is a key and critical factor for any business to grow, thrive and flourish to the expected standards. This piece of writing highlights and analyzes the major factors that ought to be considered when locating their business. This piece of writing is thus important, vital and worthy considering by Alex and co-owners when identifying the location of for their business. Factors that Alex and his co-owners should consider when locating their business Transport and infrastructure The location should have easy access to roads, railways and other transport networks. This would ensure that the raw materials are easily and timely transported to the business in readiness to prepare the crisps. It also ensures that the crisps are easily and readily transported to the customers. Subsequently, the crisps are able to reach customers in good time. This minimizes losses due to delays in transportation of raw materials to the business premises. It also reduces losses due to wastages as a result of delays in delivery to the market, resulting to some decaying or going bad all together. The location should have modern telecommunication services. This ensures easy and reliable communication to the customers, from the manufacturers and vice versa. This is advantageous in that customers are aware of the goods and services offered by the business thus increasing consumption. It also ensures that, there is free flow of information that ensures production of quality good and those that satisfies and is wholly acceptable by the customers. Market The business should be located in a region with wide, diversified and reliable market. The market should be readily available and should be having the capacity to purchase crisps. This ensures that the crisps are consumed with minimal wastages that would otherwise lead to the business going to a loss. The market should be always reliable and dependable; this ensures the business does not incur losses when the market fluctuates to the negative. Consequently, market is a key, basic and essential factor that Alex and co-owners ought to consider before setting up their business. Availability of labor Labor efficiency is an important factor in considering the location of any business. Higher labor force aids in improving the production process which in return increases the profit in a business. The skilled labor provides the technical knowhow in dealing with task that requires some professions, cheap labor whose wages are manageable. The labor should also be reliable and dependable; this ensures consistency in production as well as profit maximization. Good relation among the various workers is paramount as it ensures unity and cooperation in all the departments in any business. Government influence and policies The business should be located in a region that is un-prohibited and widely acceptable by the incumbent government. This ensures that the business is able to get funds, grants and incentives from the government; this highly boosts the growth of the business. The funds granted can also be used to increase and improve technological levels within the business, this ensures better and higher quality goods are produced quickly and in larger scales. Governments regulate the location of business by use of such policies so as to ensure uniform growth and distribution of resources. It also ensures that some businesses with hazardous wastes are able to dump their wastes in regions that do not pose harm to human beings. Therefore it’s vital for Alex and co-owners to consider the above as a primary factor to the growth and flourishiment of their business. Raw materials Alex and co-owners should locate a region with adequate and reliable raw materials for the growth and establishment of their business. These raw materials include water, power, and potatoes among others. The region should have appropriate climate for cultivation and growth of quality potatoes. The water should be readily available and accessible not only for processing but also as backup for growth of potatoes in case of rains failure due to climate change or unanticipated calamities. In a nutshell, availability and proximity of key raw materials is a fundamental factor that should be considered when locating the site for the business. Land This is one of the key factors that need to be looked at in setting a business. The land should be affordable and at a reasonable price. Given the nature of the business, the land should be big enough to cater for all its operations. The business owner should ensure the land is unoccupied. But where a good land is traced but it is occupied, he should consult the owner concerning the purchasing of that land on the basis of the willing seller and willing buyer. Where the land has to be leased out the rents and rates should be reasonable and managble. In case the land owners have to be re-located, an amicable agreement must be reached and satisfactory compensation be granted. More so, the land should be fertile and in a position to support long-term cultivation of potatoes. Security The business should be located in a region where security is guaranteed around the clock. The security should be all round, that is: there should be security both while transporting raw materials to the industries and also while delivering the crisps to the customers. This builds the confidence of both customers and workers hence maximizing production and consumption. This greatly boosts the growth of the business. In regions where security is at stake, the business should hire or train personnel to man the business. The personnel should be properly trained and equipped thus ensuring the business security is guaranteed to the flourishment and positive advancement of the business. History and tradition Alex and co-owners should mind considering the history and tradition of the region they choose to establish their business. This gives them the green light of what has been there in the past and also the general and future expectations of the residents of that particular region. They should also find out whether the residents have any misconception and notions against consumption of crisps. This all together prepares Alex and co-owners physiologically as to what the customers expects and whether the probable business would thrive best in that particular region. This ensures that the best and workable decision is reached. This averts any chances of business failure. Cost For the future of their business, Alex and co-owners should ensure that they have enough cash to sustain their business at every stage of its development. They should be financially able to purchase the long term equipment that is most important in the operations of the business. Furthermore, their financial saving should enable them to put up the buildings for carrying out the business as well as renovating them in case they are worn out. They should be stable enough in financial terms to accommodate any loss they incur and still keep the business running as normal. All the employees should be paid in time and without any delay notwithstanding the financial challenges they are going through. Demographic changes The population structures should change in a consistent and defined manner so has to have minimal effects on the consumption of crisps. It prudent for Alex and co-owners to thoroughly study and analyze the changes in population in that particular region, this ensures that, they make informed decisions and plan in accordance with particular demographic changes, thus lowering chances of incurring any considerable losses. Weather conditions Before setting up their business, it is wise for Alex and co-works to study the weather changes at different seasons throughout the year. Since their business depends on potatoes, they should be able to find out the season, when there is a good climate to favor the growth of potatoes and see what they must do to keep their business running in the period the potatoes don’t do well. In the events where they can’t predict the climate condition of a place as it happens this days, due to tampering of ozone layer, they should put good measures in place to take care of this whenever it happens. This includes constructing water reservoirs and setting up robust irrigation systems. Zoning restrictions This is whereby governments in first world countries use zoning as a device of land use planning. Functional zoning; this is whereby the government regulates the uses to which land may be put, building heights, density of people in a given region or even the two combined together. Alex and co-owners ought to consider zoning has a critical factor when locating there business. This ensures that their business conforms to the rules and regulations set by the government. This has the advantage in that, their business is bound to thrive and grow without possibility of closure or re-location. This ultimately ensures rapid growth and establishment of their business, hence reaping huge and consistent profits. Multiple choice questions Globalization of the location decision is as result of all the following except Ans; More rapid travel and shipping In location planning, environmental regulations, cost and availability of utilities and taxes are: Ans: Site- related factors When making a location decision at a country level, which of this should be considered? Ans: political and business climate The location decision is a strategic one because/ Ans: it has a long term impact Location analysis techniques typically employed by service organization include? Ans: factor rating method True/ false questions 6. Ans; false 7. Ans; true 8. Ans; false 9. Ans; true 10. Ans; false Conclusion In reference to the above piece of writing, it’s outright that the location of a business is a key and major consideration to the success of any business. Thus Alex and co-owners ought to consider and weigh the above underlined factors, before settling on any region, as viable location for their business. Works Cited Heerkens, Gary. Project management. New York: McGraw-Hill, 2002. Print. Read More