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  1. 1. Talha shahzadi 0004 Sohail khan 0007 M. Usman khan 0014 Ejaz gadi 0025 Malik saqib 0030 M waseem jutt 0047 Prof Nadeem
  2. 2. Existing organization may need to make location decisions for a variety of reasons.
  3. 3. Mostly firms views locations as part of marketing strategy, and they look for locations that will help them to expand their markets. e.g. banks, fast food chains, supermarkets etc. Basically, the location decision in those case reflect the addition of new location to an existing system.
  4. 4. • Similar situation occurs when an organization experiences a growth in demand for its product or services that cannot be satisfied by expansion at an existing location. The addition of a new location to complement an existing system is often a realistic alternative
  5. 5. • Some firms face location through depletion of basic inputs. For example fishing operations are often forced to relocate due to the temporary exhaustion of fish at given location.
  6. 6. – Long term commitment – Impacts investment requirements, operating costs, revenue, and operations – Impacts competitive advantage – Importance of supply chain – Poor choice of location
  7. 7. Nature of Location Decisions Location decision is very important for any organization because mostly every business start for long term. Impacts on investment requirements, operating costs, revenue, and operations. These are change able due to change of demand.
  8. 8. Cont, Manufacturing and services organizations, can have a significant impact on competitive advantages. Supply chain is the system by which organizations source, make and deliver their products or services according to market demand.
  9. 9. Cont, Poor choice of location result in excessive transportation cost, shortage of qualified labor, inadequate supply of raw material
  10. 10. Objective & options of location decision Profit potential • I. II. III. IV. Expand existing facilities Add new facilities Move Do nothing
  11. 11. Objective of location decision The basic purpose of profit oriented organizations get maximum profit base their decision on profit prospective. Whereas non profit organizations struggle achieve balance between cost and the level of customer service they provide.
  12. 12. Location options There are four options of locations This option can be attractive if there is adequate room for expansion especially if the location has desirable features that are not readily available elsewhere. Another option is to add new location while retaining existing ones, as is done in many retail operation
  13. 13. Cont, A third option is to shut down at one location and move to another. Finally organizations have the option of doing nothing ( )
  14. 14. General procedure for making location decision The way an organization approaches location decisions depends on its size and the nature or scope of its operations. The general procedure for making location decisions consist of the following steps. To use for evaluating location alternative such as increase revenue or community service.
  15. 15. Cont, 2. Such as location of market or raw material. 3. a) Identify general region for a location. b) Identify small number of community alternatives. c) Identify site alternatives among the community alternatives. 4.