Assignment 7 (individual): Chapter 8: Location Strategies Chapter 9, Layout Strategy Discipline: Production Management Presented: 2nd of November, 2011

Deadline: 9th of November, 2011 by 10.10 a.m. Students name/surname: Spirina Olga Group: 434-MGMT, University of International Business Instructor: Sholpan Orumbayeva, MM Imagine that you are going to launch a business (whatever you want). 1. You should pick a location for your company (any city in the world) and explain your choice. Use the lecture 8 devoted to Location strategies. 2. Draw a plan of your office or store (or warehouse, etc. depends on the type of your business) and explain your layout (or draw a relationship chart). Use the lecture 9 devoted to Layout strategy. I am going to open business in India. It will be educational center for local population. People will study there IT technologies and computer programs. Educational center program will include following subjects: 1. Computer programming 2. Work in MS Office programs 3. Repair and installation of computer equipment 4. Setting of the software 5. Work in specialized programs (Adobe Photoshop, CorelDraw, Project Expert (for preparing of investment project), AutoCAD) Trainings will be conducted both in groups (not more than 6 people) and individually. Educational programs level will depend from participants needs. The basic educational programs levels are the following: 1. For personal use (will include the basic aspects of work with computer and software) 2. The basic standards necessary for conducting related job (will directly depend from participant preferences and developed within the limits of certain profession) 3. Professional level (everything about computers or software, full course) Why it is India? Because Human Development Index1 in India is medium. In the list of HDI of 2011 India is on the 134 place. According to researches this Index in India is increasing. India population have mathematical mentality and they are easy educated. According to researches the most part of specialists working in the companies in IT departments are Indians!!! First city where I am going to open educational center is capital of India Delhi. Delhi is an economic center of the country with the most developed infrastructure in India. Population is equal to 11 million people. Also it is business center of the country. The most part of business in India is concentrated exactly here. It means that people will come to the
The Human Development Index (HDI) is a comparative measure of life expectancy, literacy, education and standards of living for countries worldwide. It is used to distinguish whether the country is a developed, a developing or an under-developed country, and also to measure the impact of economic policies on quality of life. There are also HDI for states, cities, villages, etc. by local organizations or companies.
1

During creation of the lists of cities where I am going to open business, besides HDI and population following factors were taken in consideration: economic development, business development, FDI (Foreign Direct Investments), educational level of local population.
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Some characteristics of PEST analysis were taken from http://www.mysensex.com/

educational center to get a job or to expand knowledge in the sphere of computers and software. Because all modern organizations are computerized. Another reason to open business in Delhi is Human Development Index in this city. Delhi has medium HDI, it is on the 5th place among all cities in India. If business will be really successful I am going to expand it, and to open educational centers in other cities of India by the following order2:

1. Kerala (HDI is high, 1st place among all cities in India, population 31.8 million) 2. Chandigarh (HDI is high, 2nd place, population 642 000) 3. Punjab (HDI is medium, 15th place among all cities in India, population 27,704,236)
PEST analysis of India in order to identify possibility of opening of business3: Political factors: 1. India is the biggest democracy in the World 2. The government type is federal republic 3. Political situation in the country is stable; 4. Law is based on English common law 5. India government provide protection and development of small and medium business according to the Micro, Small and Medium Enterprises Development Act of 2006 Economic factors: 1. The GDP (Purchasing Power Parity) is estimated at 2.965 trillion U.S. dollars 2. The GDP- per Capita (PPP) is 2700 U.S. dollars 3. Economic growth is 7.7% 4. There is a continuous growth in per capita income; Indias per capita income is expected to reach 1000 dollars. It will lead to higher buying power in the Hands of the Indian consumers. 5. FDI in India in April 2011 1.97.935 millions USD Technological factors: Development Index 1. Availability of computer technologies and software in modern society

Social factors:

1. Human

improvement 2. Population in India is 1.15 billion, from which 15-64 years 63.1%. (age category of people for whom educational center is created) 3. Mathematical mentality of local population 4. Quantity of local educational institutions is not enough, and quality of education is not so good

As we can see from PEST analysis we have all possibility to open business in India. Our market segment is 63.1% of all population. Also we see the necessity of educational centers in India. We can see that economic development is good, economy is stable. Also we have laws that protect small business. We have all conditions necessary to open private business.
The Human Development Index (HDI) is a comparative measure of life expectancy, literacy, education and standards of living for countries worldwide. It is used to distinguish whether the country is a developed, a developing or an under-developed country, and also to measure the impact of economic policies on quality of life. There are also HDI for states, cities, villages, etc. by local organizations or companies.
1

During creation of the lists of cities where I am going to open business, besides HDI and population following factors were taken in consideration: economic development, business development, FDI (Foreign Direct Investments), educational level of local population.
2 3

Some characteristics of PEST analysis were taken from http://www.mysensex.com/

Plan of educational center:

1. Reception

2. 3. 4. 5. 6. 7. 8. 9.

Secretary Director Accounting department HR department Warehouse Toilet room Educational rooms Hall , - tables

- lounge zones

cases for document and equipment storage entrance and exit

- hand-drier - information about educational center and diplomas of educational center

The Human Development Index (HDI) is a comparative measure of life expectancy, literacy, education and standards of living for countries worldwide. It is used to distinguish whether the country is a developed, a developing or an under-developed country, and also to measure the impact of economic policies on quality of life. There are also HDI for states, cities, villages, etc. by local organizations or companies.
1

During creation of the lists of cities where I am going to open business, besides HDI and population following factors were taken in consideration: economic development, business development, FDI (Foreign Direct Investments), educational level of local population.
2 3

Some characteristics of PEST analysis were taken from http://www.mysensex.com/

- TV in the director room, and interactive boards in the educational rooms

- bowls and mirrors

- invalid room

- Informational stand
Relationship matrix:

As we can see absolutely necessary is the location of secretary room near the director. Placement of other zones is not so influential. Also it is important to locate accounting and HR departments near the secretary and director room. Because all financial operations of the company and such operations as hiring of new employees and training of personnel is realized under the director control, and standard functions necessary to conduct control and organize something should be done by secretary. It is important to allocate warehouse and educational rooms near to each other. Reception is also should be located near the secretary and director rooms, in order to fast and improved work with clients.

The Human Development Index (HDI) is a comparative measure of life expectancy, literacy, education and standards of living for countries worldwide. It is used to distinguish whether the country is a developed, a developing or an under-developed country, and also to measure the impact of economic policies on quality of life. There are also HDI for states, cities, villages, etc. by local organizations or companies.
1

During creation of the lists of cities where I am going to open business, besides HDI and population following factors were taken in consideration: economic development, business development, FDI (Foreign Direct Investments), educational level of local population.
2 3

Some characteristics of PEST analysis were taken from http://www.mysensex.com/