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 the reader has no idea about your industry and your business.
There are 2 critical analyses in this assignment:
Briefly introduce your business.
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.
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 – use an expected annual output in units.
Analyze the lowest costs between all 3 locations and then indicate the crossover point for the highest profit
Provide a detailed explanation to justify the numbers.
