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The Teacher as a Professional

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MNE3701 - ASSIGNMENT 2 UNIQUE NO: 873203 Jasmin David (Student No. 35536500)

Question 1: 1.1 ) Selecting a good Business Location. There are 5 key factors in determining a good business location; Customer Accessibility is important in determining the location of the business. The business (retail outlet/service firms) needs to be situated where there is easy access. In companies where the cost of shipping or transporting of the finished good is high, consideration should be given to produce or manufacture goods closer to the consuming market due to the excessive transportation costs. Business Environmental conditions. There are several conditions to take into consideration, such as competition, crime, legal requirements, weather or climate which may create a need for other products or product testing conditions. Eg. Air conditioners, heated pools, specific security measures, etc. Resource Availability. For any operation to be efficient and sucessful there must be adequate resources available. Resources such as raw materials are not always available in all areas, therefore a business that deals with manufacturing these raw materials should be located close by. Also labour supply and availability and access to transport should be considered. Entrepreneur’s personal preferences. It is normally the entrepreneur’s personal preference and convenience that influences the decision making when locating a business. Entrepreneurs may choose a local site or location with which they are comfortable and know the surroundings or a site with unique lifestyle advantages. Site Availability and costs. A specific site is to be chosen in line with the needs of the business. A site may either be close to the customer-retail, or supplier (supplier of intermediate goods.) Leasing a site is advisable in order to avoid large cash outlays which reduce the risk by minimizing investments and

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