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ENTREPRENEURSHIPENTREPRENEURSHIP
University of Management and Technology1901 N. Fort Myer Drive
Arlington, VA 22209 USAPhone: (703) 516-0035
Fax: (703) 516-0985Website: www.umtweb.edu
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CHAPTER 12:CHAPTER 12:Choosing the Right Choosing the Right Location and LayoutLocation and Layout
Zimmerer, T. W and Scarborough, Zimmerer, T. W and Scarborough, N. M. N. M. Essentials of Essentials of
Entrepreneurship and Small Entrepreneurship and Small Business Management (3rd ed.)Business Management (3rd ed.)
Prentice Hall © 2002.Prentice Hall © 2002.
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Choosing a LocationChoosing a Location
The right region of the country
The right state in the region
The right city in the state
The right site in the city
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Choosing the Region:Choosing the Region:Sources of InformationSources of Information
Census data
World Wide Webhttp://www.census.gov/
http://govinfo.kerr.orst.edu/
Survey of Buying Power
Editor and Publisher Market Guide
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Choosing the Region:Choosing the Region:Sources of InformationSources of Information
The American Marketplace: Demographics and Spending Patterns
Rand McNally's Commercial Atlas and Marketing Guide
Zip Code Atlas and Market Planner
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Geographic Information SystemsGeographic 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.
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Choosing the StateChoosing the State
Proximity to markets
Proximity to raw materials
Wage rates
Labor supply needs
Business climate
Tax rates
Internet access
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Choosing the CityChoosing the City
Population trends
Competition
Clustering
Compatibility with community
Local laws and regulations
Transportation networks
Police and fire protection
Cost of utilities and public services
Quality of life
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Retail and Service Location Retail and Service Location ConsiderationsConsiderations
Trade area sizeRetail compatibility
Degree of competition
Index of retail saturation (IRS)
Transportation network
Physical, racial, or emotional barriers
Political barriers
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Retail and Service Location Retail and Service Location ConsiderationsConsiderations
Customer traffic
Adequate parking
Reputation
Room for expansion
Visibility
continuedcontinued
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Retail and Service Location Retail and Service Location OptionsOptions
Central Business Districts (CBDs)
Neighborhood locations
Shopping centers and mallsNeighborhood shopping centers
Community shopping centers
Regional shopping centers
Power centers
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Shopping Centers and MallsShopping Centers and Malls
Neighborhood Shopping Centers3 to 12 Stores; anchor is supermarket or drugstore
Community Shopping Centers12 to 50 stores; anchor is department or variety store
Regional Shopping Malls50 to 100 stores; anchor is one or more major department stores
Power CentersCombines drawing power of a mall with convenience of neighborhood shopping center
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Retail and Service Location Retail and Service Location OptionsOptions
Near competitors
Outlying areas
Home-based businesses
continuedcontinued
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Manufacturing LocationsManufacturing Locations
Foreign trade zones
Empowerment zones
Business incubators
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Business IncubatorsBusiness Incubators
Organizations that combine low-cost, flexible rental space with a multitude of support services for their small business residents.
More than 900 in operation across the U.S., and a new one opening, on average, every week.
They work!! Firms that “graduate” from incubators have a success rate of 87%.
Average incubator houses 20 businesses employing 55 people.
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Layout:Layout:External FactorsExternal Factors
Adequate size to accommodate business needs.
Create the proper image or "personality" for the business in the customer's eyes.
Entrances must invite customers to come in.
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Layout:Layout:External FactorsExternal Factors
Create effective window displays and change them often; they can be powerful sales tools.
Must comply with Americans with Disabilities Act.
Pay attention to the business sign, the most direct method of reaching potential customers.
continuedcontinued
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A Business SignA Business Sign
Tells potential customers who you are and what you're selling.
Must comply with local sign ordinances.
Should be visible, simple, and clear.
Should be changed periodically to avoid becoming part of the background.
Should be legible both day and night.
Must be maintained properly.
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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.
Careful selection of colors can create the desired impressions among customers and employees.
Appealing to all of the customer's senses can boost sales.
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Three Layout PatternsThree Layout Patterns
GridRectangular with parallel aisles; formal; controls traffic flow; uses selling space efficiently.
Supermarkets and self-service discount stores.
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Three Layout PatternsThree Layout Patterns
Free-FormFree-flowing; informal; creates "friendly" environment; flexible.
Small specialty shops.
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Three Layout PatternsThree Layout Patterns
BoutiqueDivides store into a series of individual shopping areas, each with its own theme; unique shopping environment.
Small department stores.
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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 nonselling functions.
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Factors to Consider in Factors to Consider in Manufacturing LayoutsManufacturing Layouts
Type of product
Type of production process
Ergonomic considerations
Economic considerations
Space availability within the facility
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Manufacturing LayoutsManufacturing Layouts
Product layout
Process layout
Fixed position layout
Functional layout