Business Location Decisions

As per business case study assignment help experts, Following are the factors that should be considered by firm, while taking location decision:

Availability of Raw Material and Resources: Availability of resources is very important factor that must be considered by firm, while select location. Availability of raw material, human resources and suppliers’ impact on cost of production are some factors that manufacturing firm should consider, while selecting location. Fast-food chain have to consider the availability of raw material such as availability of milk, vegetables, fruits, eggs, fish, wheat, rise, etc and availability of resources such as human resources, suppliers, etc to select the location in India.

 

Fast-food chain firm’s production cost depends on these factors, so these factors must be considered by them in location decisions (Talloo, 2007). Software firm will only consider the availability of cheaper human resources to select location for business in India.

 

Technology: Advance in technology can reduce the cost of production through improving productivity of the firm. High technology can help to improve the productivity of employees that increase the overall production of firm (Assignment Help). Software firm will be more focused on availability of technology in compare to fast-food chain, while taking decision to enter in Indian market.

 

Market and Customer Proximity: Firm focuses on location of market proximity or the nearness to the market and customer, while choosing the business location. Firms may need to locate business near the particular center of population to effectively attract the customers and reduce the cost of distribution and transportation (Anderson & Wassmer, 2000).

 

Fast-food chain should be analyzed the market and customer characteristics before setting up business in Indian market. Software firm can be located its business, where business customers are available in market.

 

Government Policy: Government policies, political system, laws and regulations of a country also influence the location decision of a firm. In India, the government offer several incentives and benefits to industries for the location of plants in underdeveloped or specific area such as SEZs that should be considered by firm to establish business in the country (Talloo, 2007). Fast-food chain and software firm both will consider the law and regulation of India, while selecting the location to establish the business.

 

References : Anderson, J.A. & Wassmer, R.W. (2000). Bidding for Business: The Efficacy of Local Economic Development Incentives in a Metropolitan Area. USA: W.E. Upjohn Institute. Gunnigle, P. & Guire, M. D. (2001). Why Ireland? A Qualitative Review of the Factors Influencing the Location of US Multinationals in Ireland with Particular Reference to the Impact of Labour Issues. The Economic and Social Review, 32(1), 43-67. Talloo, T.J. (2007). Business Organisation And Management. India: Tata McGraw-Hill Education.

 

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