Business Location Case Study

Attributes of Location to Business Entities along Singalong Malate, Manila

Location of a business is where it is situated. To locate a business it has a crucial decision because this will have an important impact on profits. High revenue - Low cost = High profit. So typically business will seek locations that maximise revenues and minimise costs. Two types of factors. Push factors- this affects the business to be negative. • It includes = Rising competition in an area, rising cost, poor communications systems, and falling demand. Pull factors- this affects the business to be positive. • it includes = Government incentives, low labour cost, good communication systems and developing markets.

In choosing a business location therefore firms need

Convenience, A great location should be accessible and close to other places that matter in your daily life—school, office, shops, restaurants, church and other places where you and your friends can hang out and simply have fun. Value for Money, A great location has to offer value for money. And while it may be true that a great location comes at a price, the best location doesn’t necessarily have to be the priciest. Prestige, Any location has the potential to be good. But for a location to be great, it has to have some prestige. It doesn’t help as much, for example, to be the prettiest house in a shoddy neighbourhood as to be a pretty house in the prettiest, safest and most secure

9. The building’s infrastructure.

- Many older buildings don't have the necessary infrastructure to support the high-tech needs of contemporary operations.

10. Utilities and other costs

- Rent composes the major portion of your ongoing facilities expense, but consider extras such as utilities—they’re included in some leases but not in others.

“Pick the right location and your start-up gets the resources it needs to grow. Pick the wrong place to run the company and it withers in the struggle to get them.”– Kuhn and Karter

In addition to Kuhn and Karter, there are 5 Tips for New Store Location

1. Brand Image

Is your location consistent with the image you want to maintain? If you are opening an upscale salon your ideal location would not be in a neighborhood flanked by pawn shops and quick loans. Brand image should be consistent with location.

2. Competition

Are the businesses around you complementary or in competition with your new store? It’s not necessary to shy away from your competition, but you don’t want to be the third yogurt shop within one mile, either. Check out the competition before you commit to a location.

3. Local Labor