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Chapter 14

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  • 1. CHAPTER 14 DISCUSSION QUESTIONS1) Above all, an entrepreneur must place who first when considering a location?2) Entrepreneurs generally prefer to locate in regions of the country that areexperiencing what?3) What is one of the first stops entrepreneurs should make when conducting aregional evaluation?4) Every state has what type of office working to recruit new businesses?5) Because of its location in the center of the country, what city has become hometo many companies distribution centers?6) For many businesses, especially technology-driven companies, what is one ofthe most important characteristics of a potential location?7) What is one consistent trend that the lists of "best cities for business" haverevealed about successful small companies?8) What are "clusters?"9) What is the final step in the location selection process?10) The one element common to all businesses is the need to locate what?11) Define layout.12) What should entrances do to customers entering a store?13) Define ergonomics.14) What allows employees to work at maximum efficiency?15) What are key ingredients to engage all of a companys customers senses?
  • 2. BEER CONSUMER DEMOGRAPHICS (BASED ON GALLUP POLL CONDUCTED JULY 2010 OF U.S. ADULTS 18+)•MEN ACCOUNT FOR MORE THAN 80% OF THE VOLUME CONSUMED.•MEN UNDER 50 ARE AMONG THOSE WHO MOST STRONGLY PREFER BEER AS THEIRALCOHOLIC DRINK.•18-34 YEAR OLDS STRONGLY PREFER BEER AS THEIR ALCOHOLIC DRINK.•55+ CHOOSE WINE AS THEIR PREFERRED ALCOHOLIC BEVERAGE.•BEER IS THE TOP CHOICE FOR ALL 4 MAJOR REGIONS OF THE COUNTRY.•BEER IS MOST POPULAR IN THE MIDWEST.
  • 3. QuickTimeª and a decompressorare needed to see this picture.
  • 4. QuickTimeª and a decompressorare needed to see this picture.
  • 5. QuickTimeª and a decompressor are needed to see this picture.•MINTEL GROUP LTD. IS A PRIVATELY OWNED LONDON-BASED MARKET RESEARCH FIRMTHAT WAS ESTABLISHED IN 1972.•THE FOLLOWING IS BASED ON MINTEL RESEARCH PUBLISHED IN 2010.•13% OF US BEER DRINKERS SAY THEY PREFER DOMESTIC CRAFT OR MICROBREW BEER,COMPARED TO 43% FOR TRADITIONAL DOMESTIC BEER.•BUT 59% SAY THEY LIKE TO TRY THEM & 51% SAY THEY WOULD TRY MORECRAFT/MICROBREW BEERS IF THEY KNEW MORE ABOUT THEM. “Craft beers have increased in popularity in the past five years, and enjoyed a boost in theirconsumer base. Craft beer is most popular with the 25-34-year-old crowd, so manufacturers would be wise to target this demographic and educate them more about artisan beers.” GARIMA GOEL LAL SENIOR ANALYST AT MINTEL
  • 6. •MINTEL FOUND THAT PRICE IS A DETERRENT FOR SOME DRINKERS.•41% OF DRINKERS ONLY ENJOY CRAFT/MICROBREW BEERS AS ATREAT BECAUSE THEY ARE EXPENSIVE.•29% REPORT DRINKING LESS CRAFT BEER BECAUSE OF PRICE.•BUT, THE INDUSTRY LIKE THE ECONOMY IS BOUNCING BACK.“The recession hit many industries hard, and the beer market was noexception. The good news is, it appears that the influence of the recessionis becoming less pronounced on the beer market in terms of losingvolume. The number of beer drinkers who are drinking less beer hasdecreased since 2009.” GARIMA GOEL LAL SENIOR ANALYST AT MINTEL
  • 7. •MINTEL ALSO FOUND THAT PACKAGING IS JUST AS IMPORTANT ASTHE BEER ITSELF.•63% OF BEER DRINKERS PREFER A BOTTLE.•20% OF BEER DRINKERS PERFER A CAN.•8% OF BEER DRINKERS PREFER DRAFT BEER. QuickTimeª and a decompressor are needed to see this picture.
  • 8. TOP 5 STATES IN BREWERIES PER CAPITA (BASED ON 2010 CENSUS DATA)
  • 9. 5) MAINE BREWERIES: 31PER CAPITA: 42,850 QuickTimeª and a decompressorare needed to see this picture.
  • 10. 4) COLORADO BREWERIES: 118PER CAPITA: 42, 260 QuickTimeª and a decompressor are needed to see this picture.
  • 11. 3) MONTANA BREWERIES: 27 PER CAPITA: 36,645 QuickTimeª and a decompressorare needed to see this picture.
  • 12. 2) OREGON BREWERIES: 121PER CAPITA: 31,662 QuickTimeª and a decompressor are needed to see this picture.
  • 13. 1) VERMONT BREWERIES: 21PER CAPITA: 29,797 QuickTimeª and a decompressor are needed to see this picture.
  • 14. OCEANSIDE ALE WORKS•FIRST MICROBREWERY IN OCEANSIDE, CA (NORTH COAST OF SANDIEGO) QuickTimeª and a decompressor are needed to see this picture. THE MENTOR: OCEANSIDE ALE WORKS
  • 15. TOP FACTORS THAT MAKE AN AREA SUITABLE FOR STARTING & GROWING SMALL COMPANIES3) ACCESS TO DYNAMIC UNIVERSITIES4) AN AMPLE SUPPLY OF SKILLED WORKERS5) A NEARBY AIRPORT6) A TEMPERATE CLIMATE7) A HIGH QUALITY OF LIFE
  • 16. CHOOSING A LOCATION•THE KEY TO FINDING A SUITABLE LOCATION ISIDENTIFYING THE CHARACTERISTICS THAT CAN GIVE ACOMPANY A COMPETITIVE EDGE & THEN FINDING ALOCATION THAT MEET THOSE CRITERIA.•THE SECRET LIES IN KNOWING WHICH FACTORS AREMOST IMPORTANT TO A COMPANY’S SUCCESS & THENFINDING A LOCATION THAT SATISFIES AS MANY OF THEMAS POSSIBLE. -WHAT ARE THE IMPORTANT LOCATION FACTORS FOR A MICROBREWERY?
  • 17. LOCATION DECISION PYRAMID SITE CITY STATE REGION
  • 18. CHOOSING THE REGION
  • 19. WHICH REGION OF THE COUNTRY HAS THE CHARACTERISTICS NECESSARY FOR A NEW BUSINESS TO SUCCEED?-THE ENTREPRENEUR MUST PLACE THE CUSTOMER FIRSTWHEN DECIDING ON A LOCATION.-QUESTIONS TO CONSIDER: -HOW LARGE IS THE POPULATION? -HOW FAST IS IT GROWING? -WHAT IS THE MAKEUP OF THE OVERALL POPULATION? -WHICH SEGMENTS ARE GROWING FAST? -WHAT IS THE TREND IN THE POPULATIONS INCOME? -WHAT KIND OF BUSINESSES ARE IN THE REGION?
  • 20. CHOOSING THE STATE
  • 21. EACH STATE HAS AN ECONOMIC DEVELOPMENT OFFICETHAT CAN HELP AN ENTREPRENEUR ASSESS THE BUSINES CLIMATE OF THE STATE.-FACTORS THAT AN ENTREPRENEUR SHOULD CONSIDERWHEN CHOOSING A STATE: -PROXIMITY TO MARKETS -PROXIMITY TO NEEDED RAW MATERIALS -WAGE RATES -LABOR SUPPLY NEEDS -BUSINESS CLIMATE -TAX RATES -INTERNET ACCESS -TOTAL OPERATING COSTS
  • 22. CHOOSING THE CITY
  • 23. •“BEST CITIES FOR BUSINESS” LISTS COMPILED ANNUALLY BY INDUSTRYPUBLICATIONS REVEALS ONE CONSISTENT TREND: -MORE POTENTIAL CUSTOMERS MEAN THAT A SMALL BUSINESS HAS A BETTER CHANCE FOR SUCCESS.•ANALYZING & STUDYING A THE CHARACTERISTICS OF A CITY’S POPULATIONGIVE AN ENTREPRENEUR THE FACTS HE/SHE NEEDS TO MAKE AN INFORMEDLOCATION DECISION.•A COMPANY’S LOCATION SHOULD MATCH THE MARKET FOR ITS PRODUCTS/SERVICES.•FACTORS TO CONSIDER WHEN EVALUATING CITIES AS POSSIBLE BUSINESSLOCATIONS:-COMPETITION -COMPATIBILITY -TRANSPORTATION-CLUSTERING -LOCAL LAWS -POLICE & FIRE-COST OF UTILITIES -QUALITY OF LIFE
  • 24. CHOOSING THE SITE
  • 25. • A MANUFACTURER’S SITE CONSIDERATION IS BASED ON THE ACCES TO THE FOLLOWING MAIN FACTORS:2) RAW MATERIALS3) SUPPLIERS4) LABOR5) TRANSPORTATION6) CUSTOMERS**FOR THE CLASS ASSIGNMENT, THERE ARE 2 MAIN TYPES OF DIRECT CUSTOMERS:• RETAIL OUTLETS (GROCERY STORES, LIQUOR SHOPS, ETC)• BARS & RESTAURANTS

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