Talha shahzadi 0004
Sohail khan 0007
M. Usman khan 0014
Ejaz gadi 0025
Malik saqib 0030
M waseem jutt 0047
Existing organization may need to make
location decisions for a variety of reasons.
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
• 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
• 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.
– Long term commitment
– Impacts investment requirements, operating
costs, revenue, and operations
– Impacts competitive advantage
– Importance of supply chain
– Poor choice of location
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.
Manufacturing and services organizations, can
have a significant impact on competitive
Supply chain is the system by which
organizations source, make and deliver their
products or services according to market
Poor choice of location result in excessive
transportation cost, shortage of qualified
labor, inadequate supply of raw material
Objective & options of location
Expand existing facilities
Add new facilities
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.
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
Another option is to add new location while
retaining existing ones, as is done in many retail
A third option is to shut down at one location
and move to another.
Finally organizations have the option of doing
General procedure for making location
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.
Such as location of market or raw material.
a) Identify general region for a location.
b) Identify small number of community
c) Identify site alternatives among the community