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Business size and location decisions
Business size and location decisions
Business size and location decisions
Business size and location decisions
Business size and location decisions
Business size and location decisions
Business size and location decisions
Business size and location decisions
Business size and location decisions
Business size and location decisions
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Business size and location decisions

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  • 1. Business Size and Location Powerpoint Templates Page 1
  • 2. Concept: Size of business refers to the scale of operations and it is important because it affects the cost operations and inputs required. • Total Assets • Capital Required • Number of workers employed • Capacity of plants • Quantity of materials Powerpoint Templates Page 2
  • 3. Factors Affecting Size of Business 1. Type of industry 2. Nature and variety of product 3. Size of the market 4. Capital requirements 5. Ability and policy of owners 6. Cost of transport Powerpoint Templates Page 3
  • 4. Factors affecting Location Decisions 1. Availabilty of raw materials 2. Proximity to the market 3. Labour supply 4. Transportation and Communication 5. Power and fuel 6. Climate and topography 7. Momentum of an early start 8. Supply of capital 9. Government policy 10.Strategic considerations 11.Miscellaneous Powerpoint Templates Page 4
  • 5. Urban Location Advantages Disadvantages Good transport & communication High cost of land and building Availabilty of skilled labour High wage rates Easy availability of power High taxes Good drainage system Over crowding Well developed markets Strict legal restrictions Health, education, other amenities Strong trade unions Pollution Powerpoint Templates Page 5
  • 6. Rural Location Advantages DisadvantagesEasy availabilty of land Shortage of skilled labourLow cost of land & buildings Poor transport and communicationLow wage rates Irregular power supplyAbundant supply of unskilled Inadequate banking, insurancelabour and postal servicesPollution free environment Absence of basic amenitiesNo over crowdingTax Incentives Powerpoint Templates Page 6
  • 7. Need for Government PolicyBalanced Regional Development1. To reduce regional disparities2. To provide employment opportunities3. To ensure optimum utilisation of local resources4. To improve living standards in backward areas5. To avoid social problems like slum, over crowding.6. To safeguard industries against external attacks Powerpoint Templates Page 7
  • 8. Policy measures by GovernmentPositive Approach – Encouraging the setting ofIndustries in backward areas to achieve balancedRegional development.Negative Approach – Restraining further concentrationIndustries in already developed areas. Powerpoint Templates Page 8
  • 9. Industrial EstatesAn institutional arrangement for building upbasic infrastructure and common servicefacilties for development of industrial units.Hence, its a planned clustering of industrial unitsOffering standard factory accomodation and variety ofServices and facilties to occupants. Powerpoint Templates Page 9
  • 10. ThanksPowerpoint Templates Page 10

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