Ch. 14 Choosing the Right Location and Layout
Ch. 14 Choosing the Right Location and Layout MGMT 3850
Popular in Foundations of Entrepreneurship
Popular in Entrepreneurship
This 3 page Class Notes was uploaded by Alora Lornklang on Sunday May 1, 2016. The Class Notes belongs to MGMT 3850 at University of North Texas taught by Brandi Everett in Spring 2016. Since its upload, it has received 19 views. For similar materials see Foundations of Entrepreneurship in Entrepreneurship at University of North Texas.
Reviews for Ch. 14 Choosing the Right Location and Layout
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 05/01/16
MGMT 3850 Foundations of Entrepreneurship Chapter 14: Choosing the Right Location and Layout 1. Explain the stages in the location decision: Choosing the region, the state, the city, and the final site. a. The location decision is one of the most important decisions an entrepreneur will make given its longterm effects on the company. An entrepreneur should look at the choice as a series of increasingly narrlow decisions: Which region of the country? Which state? Which city? 2. Describe the location criteria for retail and service businesses a. For retailers, the location decision is especially crucial. Retailers must consider the size of the trade area, the compatibility of surrounding businesses, the degree of competition, the suitability of the surrounding transportation network, physical and psychological barriers, volume of customer traffic, adequacy of parking spots, a site’s reputation, and the site’s visibility. 3. Outline the location options for retail and service businesses: central business districts, neighborhoods, shopping centers and malls, near competitors, shared spaces, inside large retail stores, nontraditional locations, at home, and on the road. a. Retail and service businesses have nine basic location options: central business districts; neighborhoods; shopping centers and malls; near competitors, shared spaces; inside large retail stores; nontraditional locations, such as museums, sports, arenas, and college campuses; at home; and on the road 4. Explain the site selection process for manufacturers a. A manufacturer’s location decision is strongly influenced by local zoning ordinances. Some areas offer industrial parks designed specifically to attract manufacturers. Two crucial factors for most manufacturers are the reliability (and the cost of transporting) raw materials and the quality and quantity of available labor b. A foreign trade zone is a specially designated area in or near a U.S. customs port of entry that allows resident companies to import materials and components from foreign countries; assemble, process, manufacture, or package them; and then ship the finished product while either reducing or eliminating tariffs and duties c. Business incubators are locations that offer flexible, lowcost rental space to their tenants as well as business and consulting services. Their goal is to nurture small companies until they are ready to “graduate” into the business community. Many government agencies and universities sponsor incubator locations. 5. Describe the criteria used to analyze the layout and design considerations of a building, including the Americans with Disabilities Act. a. When evaluating the suitability of a particular building, an entrepreneur should consider several factors: size, construction, and external appearance, sound, entrances, legal issues, signs, interior, and lights and fixtures. 6. Explain the principles of effective layouts for retailers, service businesses, and manufacturers a. Layout for retail stores and service businesses depend on the owner’s understanding of his or her customers’ buying habits. Some areas of a retail store generate more sales per square foot and therefore are more valuable b. The goal of a manufacturer’s layout is to create a smooth, efficient work flow. Three basic options exist: product layout, process layout, and fixed position layout. Two key considerations are worker productivity and materials handling costs. Vocabulary Clusters o Geographic concentrations of interconnected companies, specialized suppliers, and service providers that are present in a region. Zoning laws o Laws that divide a city or country into small cells or districts to control the use of land, buildings, and sites Variance o A special exemption to a zoning ordinance Trading area o The region from which a business can expect to draw customers over a reasonable time span Retail compatibility o The benefits a company receives by locating near other businesses that sell complementary products and services or that generate high volumes of traffic Index of retail saturation o A measure of the potential sales per square foot of store space for a given product within a specific trading area; it is the ratio of a trading area’s sales potential for a product or service to its sales capacity Coworking o A situation in which two or more small companies share the same space Foreign trade zone o A specially designated area in or near a US customs port of entry that allows resident companies to import materials and components to import materials and components from foreign countries; assemble, process, manufacture, or package them, and then ship the finished product while either reducing or eliminating tariffs and duties. Business incubator o An organization that combines lowcost, flexible, rental space with a multitude space with a multitude of support services for its small businesses residents Layout o The logical arrangement of the physical facilities in a business that contributes to efficient operations, increased productivity, and higher sales Americans with Disabilities Act (ADA) o A law that requires practically all businesses to make their facilities available to physically challenged customers and employees. Ergonomics o The science of adapting work and the work environment to complement employees’ strengths and to suit customers’ needs Product (line) layout o An arrangement of workers and equipment according to the sequence of operations performed on a product Process layout o An arrangement of workers and equipment according to the general function they perform, without regard to any particular product or customer Fixed position layout o An arrangement in which materials do not move down a production line but rather, because of their weight, size, or bulk, are assembled on the spot
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'