choosing the right location and layout. choosing a location the right region of the country the...
TRANSCRIPT
Choosing a LocationChoosing a Location
The right region of the countryThe right state in the regionThe right city in the stateThe right site in the cityWhere is the growth potential????
Dr. Jerry Kudlats
Choosing the Region:Choosing the Region:Sources of InformationSources of Information
Census data◦ http://www.census.gov/◦ http://factfinder.census.gov
ZoomProspector◦ www.zoomprospector.com
Population Reference Bureau◦ www.prb.org
STAT-USA ◦ http://www.statusa.gov
Dr. Jerry Kudlats
Choosing the Region:Choosing the Region:Sources of InformationSources of Information
Commercial Atlas and Marketing Guide
Zip Code Atlas
Geographic Information Systems (GIS)
◦U.S. Census Department’s TIGER
Dr. Jerry Kudlats
(continued)
Geographic Information Systems Geographic Information Systems (GIS)(GIS)
Computerized programs combining map-drawing with database management capability.
Search through virtually any database and then plot the results on a map.
Visual display reveals otherwise hidden trends.
Dr. Jerry Kudlats
Choosing the StateChoosing the State Proximity to markets
◦ reduces distribution costs
Proximity to needed raw materials
◦ Closer to suppliers the better - Reduces costs to make product
Wage rates
◦ Wages very state to state affecting cost of doing business
Labor supply needs
◦ 2 factors - # of workers available and their level of education
Business climate
◦ City/state restrictions – ie blue laws (Sunday closings)
Tax rates
◦ Special tax rate incentives – Kia in Georgia, or Mercedes in AL.
Internet access
◦ Make sure hi speed access – DSL or T1 is available
Total operating costs
◦ Wages, taxes, utilities, rent all affect the business ventureDr. Jerry Kudlats
State Evaluation MatrixState Evaluation Matrix
State Weighted Score (Weight x Score)
Location Criterion Weight
Score (Low = 1, High =
5) State 1 State 2 State 3
Quality of labor force
Wage rates
Union activity
Property/building costs
Utility costs
Transportation costs
Tax burden
Educational/training assistance
Start-up incentives
Raw material availability
Quality of life
Other:
Other
Total Score Dr. Jerry Kudlats
TABLE 14.1
Choosing the CityChoosing the City
Population trendsCompetitionClusteringCompatibility with communityLocal laws and regulationsZoning regulations – commercial
vs. residentialDr. Jerry Kudlats
Choosing the CityChoosing the City
Appropriate infrastructureCost of utilities and public servicesIncentivesQuality of life
Dr. Jerry Kudlats
(continued)(continued)
Location Criteria for Retail and Location Criteria for Retail and Service Service
Trade area size – the region from which a business can expect to draw customers
Retail compatibilityDegree of competition
Dr. Jerry Kudlats
Retail & Service Location OptionsRetail & Service Location Options
Central Business Districts (CBDs)Neighborhood locationsShopping centers and malls
Dr. Jerry Kudlats
Shopping Centers and MallsShopping Centers and Malls
Neighborhood shopping centers◦ 3 to 12 Stores; anchor is supermarket or drugstore;
serves up to 40,000 people – usually within 10 minutes travel time.
Community shopping centers◦ 12 to 50 stores; anchor is department or variety
store; serves 40,000 to 150,000 people.Power centers
◦ Combine drawing power of a mall with convenience of neighborhood shopping center; anchor stores typically occupy 80% of space.
Dr. Jerry Kudlats
Shopping Centers and MallsShopping Centers and Malls
Theme or festival centers◦ Employ a unifying theme, often involving
entertainment, to attract tourists. Outlet centers
◦ Feature manufacturers’ and retailers’ outlet stores selling name-brand goods at discount prices; usually follows “open air” design.
Lifestyle centers◦ Located near affluent residential neighborhoods;
designed to look more like a central business district than a shopping center or mall.
Dr. Jerry Kudlats
(continued)
Shopping Centers and MallsShopping Centers and Malls
Regional shopping malls◦ 50 to 100 stores; anchor is one or more major
department stores; draws customers from a large trading area, often 5 to 15 miles or more.
Super-regional shopping malls◦ Similar to a regional mall but bigger; trading area is
25 miles or more in all directions.◦ Examples
Mall of America (Bloomington, MN), the largest mall in the U.S.
West Edmonton Mall (West Edmonton, Canada), the largest mall in North America.
Dr. Jerry Kudlats
Dr. Jerry Kudlats
FIGURE 14.1 Shopping Mall Patterns Source: International Council of Shopping Centers.
Retail and Service Location Retail and Service Location OptionsOptions
Near competitors
Inside large retail store
Outlying areas
Home-based businesses
◦Low cost to set up
Dr. Jerry Kudlats
(continued)
Location Decisions for Location Decisions for ManufacturersManufacturers
Foreign trade zones◦Area in or near a U.S. customs port of
entry.
Dr. Jerry Kudlats
Business IncubatorsBusiness Incubators
Organizations that combine low-cost, flexible rental space with a multitude of support services for their small business residents.
More than 1,100 in operation across the U.S.They work!
◦ Companies that “graduate” from incubators have a success rate of 87%.
◦ 84% of graduates stay in the local community, creating local job opportunities.
Dr. Jerry Kudlats
FIGURE 14.3 Business Incubator Tenants by Industry Source: National Business Incubation Association. Dr. Jerry Kudlats
LayoutLayout
The logical arrangement of the physical facilities of a business that contributes to efficient operations, increased productivity, and higher sales.
Study: Employees believe that the quality and quantity of their work would increase by an average of 25% with better workplace design.
Dr. Jerry Kudlats
Layout: External FactorsLayout: External Factors
The size must be adequate to accommodate business needs.
The appearance must create the proper image or “personality” for the business in the customer’s eyes.
The entrance must invite customers to come in.
Dr. Jerry Kudlats
Must comply with Americans with Disabilities Act (ADA).
Pay attention to the business sign, the most direct method of reaching potential customers.
Dr. Jerry Kudlats
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Layout: External Factors
A Business SignA Business Sign
Tells potential customers who you are and what you’re selling.
Contrasting colors and simple typeface.
Should be visible, simple, and clear.
Should be legible both day and night.
Must be maintained properly.
Must comply with local sign ordinances.
Dr. Jerry Kudlats
Building InteriorsBuilding Interiors
Ergonomics is an integral part of any design.Proper layout and design pays off in higher
productivity, efficiency, or sales.Proper lighting is measured by what is ideal for
the job being done – the use of natural light can increase retail sales.
Sound and scent should appeal to all customers and can boost sales.
Environmental-friendly design for efficiency and appeal.
Dr. Jerry Kudlats
Layout GuidelinesLayout Guidelines
Know your customers’ buying habits and plan your layout accordingly.
Display merchandise as attractively as your budget will allow.
Display complementary items together.Recognize the value of floor space; never
waste valuable selling space with non-selling functions. High mark up items = prime space!!
Dr. Jerry Kudlats
Three Retail Layout PatternsThree Retail Layout Patterns
Grid◦Rectangular with parallel aisles;
formal; controls traffic flow; uses selling space efficiently.
◦Supermarkets and self-service discount stores.
Dr. Jerry Kudlats
In addition to the text
Three Retail Layout PatternsThree Retail Layout Patterns
Free-Form◦Free-flowing; informal; creates
“friendly” environment; flexible.◦Small specialty shops.
Dr. Jerry Kudlats
In addition to the text
Three Retail Layout PatternsThree Retail Layout Patterns
Boutique◦Divides store into a series of individual
shopping areas, each with its own theme; unique shopping environment.
◦Small department stores.
Dr. Jerry Kudlats
In addition to the text
Layout for ManufacturersLayout for Manufacturers
Type of productType of production processErgonomic considerationsEconomic considerationsSpace availability
within the facility
Dr. Jerry Kudlats
Manufacturing LayoutsManufacturing Layouts
Analyzing production layouts: Avoid the 7 forms of waste◦Transportation◦Inventory◦Motion◦Waiting◦Overproduction◦Processing◦Defects
Dr. Jerry Kudlats