Location strategies (CH 8).
Your objective is to select the next location for your business (use your Assignment 1 business or any other). Assume that your business does not exist in the selected states.
Also, assume that I have no idea about your industry and your business.
There are 2 critical analyses in this assignment:
Briefly introduce your business (you can use from your earlier assignment).
Identify and explain the major factors that affect your business location decisions(also study the Key Success Factors – Fig. 8.1).
Use the Factor Rating Method to evaluate location alternatives. Look at 3 alternative states/cities in your analysis so you can pick the right kinds of factors e.g. State can offer tax incentives while the city has a railroad station. You must use a Table and show all the numbers (as in the chapter).
When you select a city(s) refer to published statistics e.g. demographics, transportation, diversity etc.
Next, using well-researched data, do a Crossover Chart for Locational Cost-Volume Analysis – for the expected volume of output – you could use an expected annual output in units (e.g. number of new savings accounts, mortgages in a bank; new students in a school; customers in a restaurant or retail; new patients etc.
Analyze the lowest costs between all 3 locations and then indicate the crossover point for the highest profit
