LOCATION PLANNING

AND ANALYSIS
LOCATION DECISION
-reflect the addition of new locations to
an existing system.

LOCATION
-A business's location can make an important
difference to its success. Choosing the right location
means taking into account a number of factors.
A business needs to decide
on the best location taking
into account factors such as:
 Customers - is the location convenient for customers?
 Staff - are there sufficient numbers of local staff with the
right skills willing to work at the right wage?
 Support services - are there services offering specialist
advice, training and support?
 Cost - how much will the premises cost? Those situated in
prime locations (such as city centres) are far more
expensive to rent than edge-of-town premises.
The need or importance for
location decision:
 To expand market
 Cost-Advantages
 Discovery of raw material
 Additional facilities
 Mergers
 Political and social changes
 Increasing product demand
 Avail tax benefits
SUPPLY CHAIN
CONSIDERATIONS
This includes determining
the number and location
of suppliers, production
facilities, warehouses
and distribution centers.
LOCATION OPTIONS:
 Expand an existing faculty
 Add new locations while retaining existing
ones
 Shut down at one location and move to
another
 Do nothing
GLOBAL LOCATIONS
-has opened new market and it has meant
increasing of manufacturing and service
operations around the world.

-many companies are outsourcing

operations to other companies in foreign
locations
BENEFITS OF GLOBAL
LOCATION
 Markets
 Cost-savings
 Legal and regulatory
 Financial
 Others
DISADVANTAGES OF GLOBAL
LOCATION
 Transportation cost
 Security cost
 Unskilled labor
 Import restrictions
 Criticisms
RISK OF GLOBAL LOCATION
 Political
 Terrorism
 Economic
 Legal
 Ethical
 Cultural
MANAGING GLOBAL
OPERATIONS
Although global operations offer many benefits,
these operation often create new issues for
management to deal with. For example,
language and cultural differences increase the
risk of miscommunication and may also interfere
With developing trust that is important in business
relationships. Management styles may be quit
different, so tactics that work well in one
Country may not work in another
GENERAL PROCEDURE FOR
MAKING LOCATION DECISION:
1. Decide on the criteria to use for evaluating
location alternatives, such as increased
revenues or community service.
2. Identify important factors, such as location
of markets or raw materials.
3. Develop location alternatives:
a. Identify a country or countries for location.
b. Identify the general region for location.
 c. Identify a small number of community
alternatives
d. Identify site alternatives among the
community alternatives
4. Evaluate the alternatives and make a selection.
MULTIPLE PLANT
MANUFACTURING STRATEGIES
When companies have multiple
manufacturing facilities, they can organize
operations in several ways. One is to assign
different product lines to different plants.
Another is to assign different market areas to
different plants. And a third is to assign
different processes to different plants. each
strategy carries certain cost and managerial
implications, as well as competitive
advantages.
1. PRODUCT PLANT STRATEGY
- With this strategy, entire products or
product lines are produced in separate
plants, and each plant usually supplies the
entire domestic market. This is essentially a
decentralized approach, with each plant
focusing on a narrow set of requirements
that entails specialization of labor, materials
and equipment along product lines.
2. MARKET AREA PLANT
STRATEGY
-With this strategy, plant are designed to
serve a particular geographic segment of a
market. Individual plants produce most if not
all of a company’s products and supply a
limited geographical area.
3. PROCESS PLANT STRATEGY
- With this strategy, different plants concentrate
on different aspects of a process. Automobile
manufactures often use this approach, with
different plants for engines, transmissions, body
stamping, and even radiators. This approach is
best suited to products that have numerous
components; separating the production of
components result in less confusion than if all
products were carried out at the same location.
4. GENERAL-PURPOSE PLANT
STRATEGY
- With this strategy, plants are flexible and
capable of handling a range of products.
This allows for quick response to product or
market changes, although it can be less
productive than a more focused approach.
THE END :D