Professional Documents
Culture Documents
THE RIGHT
LOCATION
Chapter 11
Selecting Region
Statistical reports on the growth patterns and economic performance
of the nations different regions will reveal that some regions are
more desirable areas of investment than others. Some regions like
Metro Manila, Central Luzon and Southern Luzon have higher rates
of population growth and average family income. Most prospective
investors consider such information as plus factors.
1.
2.
3.
4.
Proximity to markets
Proximity to supply of raw materials
Labor supply
Business climate
Mode
Criteria
Selecting the
Region
Population growth
Average annual income of
families
Selecting the
Province
Proximity to markets
Proximity to supply of
raw materials
Labor supply
Business climate
Selecting the
City or Town
Population trends
Local laws and regulations
Competition
Compatibility with the community
Transportation
Public services
Police and fire protection
Reputation of the location
1.
2.
3.
4.
5.
6.
7.
8.
Population trends
Local laws and regulations
Competition
Compatibility with the community
Transportation
Public services
Police and fire protection
Reputation of the location
The income level of the population of a city or town will provide the
Small business investor with data on purchasing power.
Although the population of most cities and towns are more or less
evenly distributed between the sexes, it is sometimes important for
some small businesses to be assured that this is so.
Economics
Population
Competition
Disadvantages
1.
Inflexible store hours
2.
High rents
3.
Restrictions as to the merchandise the retailer may carry
4.
Inflexible operations
5.
Possibility of too much competition
6.
Dominance of smaller stores by the lead (or anchor) store.
Viable
Community
Trading
Area
Specific
Site
1. list and
evaluate
2. make final
choice
1. list and
evaluate
2. make final
choice
1. list and
evaluate
2. make final
choice
considering
the following
factors
considering
the following
choices
considering
the following
factors
Pedestrian traffic
Economics
Population
Competition
Central
Business
District
Shopping
Center
Free standing
location
Vehicular traffic
Parking facilities
Transportation
Store composition
Specific site
Terms of occupancy
A site that has more people passing by is preferable over one with
less traffic.
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
3.
The choice of a location for service firms will depend on the traits of
the target customer.