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Chapter Twelve
Obtaining and
Laying
Out Operating
Facilities
Copyright © 2018 by McGraw-Hill Education. All rights reserved.
12-2
Some General Factors Affecting
Location Choice
1. Access to a capable, well-trained, stable work
force.
2. Availability of adequate and affordable supplies
and services.
3. Availability, type, use, and cost of
transportation.
4. Taxes and government regulations.
5. Availability and cost of electricity, gas, water,
sewerage, and other utilities.
12-3
Some Important Location Factors
Figure 12.1
12-4
Specific Factors to Consider for
Various Businesses
Retailers
 Sell goods to the ultimate consumer.
Producers
 Convert materials into products in considerable
volume for others to sell to ultimate consumers.
Service companies
 Which provide a service for customers, have
some characteristics of both retailers and
producers.
12-5
Rating Sheet for Sites
Figure 12.3
12-6
Types of Stores
Convenience goods
 Products that
customers buy often,
routinely, quickly, and
in any store that
carries them.
Shopping goods
 Goods that customers
buy infrequently,
after shopping at only
a few stores.
12-7
Types of Stores
Specialty goods
 Bought infrequently, often at exclusive outlets,
after special effort by the customer to drive to
the store.
Downtown locations
 Attract business-oriented activities, as
government, financial businesses, and head
offices of large firms are usually located in the
downtown area.
12-8
Types of Stores
Seasonal stores
 Those that target customers for specific seasons
or events.
 Some are open year-round and some are only
open seasonally.
12-9
Types of Locations
Freestanding stores,
 Found in various
locations are usually
best for customers who
have brand or company
loyalty.
 The market niche –
product and clientele –
must conform to the
needs of the people in
the area.
12-10
Types of Locations
Shopping centers
 Vary in size and are designed to draw traffic
according to the planned nature of the stores to
be included in them.
Anchor stores
 Those that generate heavy traffic in a shopping
center.
 Often large department stores placed at ends of
the mall arms.
12-11
Why are shopping centers so
popular?
Shopping centers are designed to draw traffic
according to the planned nature of the stores
to be included in them
Shopping centers offer many services, such as
specialized activities to bring in traffic,
merchant association activities, parking,
utilities, and combined advertising. A current
trend is for large "power centers" to compete
with one another to be the largest
12-11
12-12
Another reason for the popularity of
shopping centers is the growing interest in
shopping.
Enclosed malls have eliminated weather
problems for customers. Indeed, older people
are encouraged to use the mall for exercise in
a controlled climate.
12-12
12-13
Drawbacks of Shopping Centers
1. Cost: there is now a "total rent" concept for
costs that must be considered in a shopping
center. These costs may include dues to the
merchants' association, maintenance fees for
the common areas, and the cost of special
events or combined advertising. The most
common rental is a basic rent, usually based
on square footage, plus a percentage of gross
sales (usually 5 to 7 percent). In total, these
costs tend to be high and often discourage
tenants
12-14
2. Restrictions imposed by the center’s theme.
3. Operating regulations.
4. Possible changes in the center’s owners and
managers.
12-14
12-15
Plants and Physical Facilities
 Manufacturing, or production
 Usually involves making or processing materials into
finished goods.
 Success of a given location can hinge on the availability and
cost of the proper mode of transportation.
 Facilities
 The buildings, machines and other equipment, and
furniture and fixtures needed to produce and distribute a
product.
12-16
Telecommuting and Remote Locations
Needs
Access to phone systems, services, and hig-speed
internet.
The best computer and technology you can buy.
Access to pick up Fed Ex, UPS, and USPS.
Access to purchase of supplies.
Knowledge of year-round weather and
transportation.
 Four-wheel drive and gas efficient vehicle.
Contingency plan for ding business.

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Chap012-updated.ppt

  • 1. Chapter Twelve Obtaining and Laying Out Operating Facilities Copyright © 2018 by McGraw-Hill Education. All rights reserved.
  • 2. 12-2 Some General Factors Affecting Location Choice 1. Access to a capable, well-trained, stable work force. 2. Availability of adequate and affordable supplies and services. 3. Availability, type, use, and cost of transportation. 4. Taxes and government regulations. 5. Availability and cost of electricity, gas, water, sewerage, and other utilities.
  • 3. 12-3 Some Important Location Factors Figure 12.1
  • 4. 12-4 Specific Factors to Consider for Various Businesses Retailers  Sell goods to the ultimate consumer. Producers  Convert materials into products in considerable volume for others to sell to ultimate consumers. Service companies  Which provide a service for customers, have some characteristics of both retailers and producers.
  • 5. 12-5 Rating Sheet for Sites Figure 12.3
  • 6. 12-6 Types of Stores Convenience goods  Products that customers buy often, routinely, quickly, and in any store that carries them. Shopping goods  Goods that customers buy infrequently, after shopping at only a few stores.
  • 7. 12-7 Types of Stores Specialty goods  Bought infrequently, often at exclusive outlets, after special effort by the customer to drive to the store. Downtown locations  Attract business-oriented activities, as government, financial businesses, and head offices of large firms are usually located in the downtown area.
  • 8. 12-8 Types of Stores Seasonal stores  Those that target customers for specific seasons or events.  Some are open year-round and some are only open seasonally.
  • 9. 12-9 Types of Locations Freestanding stores,  Found in various locations are usually best for customers who have brand or company loyalty.  The market niche – product and clientele – must conform to the needs of the people in the area.
  • 10. 12-10 Types of Locations Shopping centers  Vary in size and are designed to draw traffic according to the planned nature of the stores to be included in them. Anchor stores  Those that generate heavy traffic in a shopping center.  Often large department stores placed at ends of the mall arms.
  • 11. 12-11 Why are shopping centers so popular? Shopping centers are designed to draw traffic according to the planned nature of the stores to be included in them Shopping centers offer many services, such as specialized activities to bring in traffic, merchant association activities, parking, utilities, and combined advertising. A current trend is for large "power centers" to compete with one another to be the largest 12-11
  • 12. 12-12 Another reason for the popularity of shopping centers is the growing interest in shopping. Enclosed malls have eliminated weather problems for customers. Indeed, older people are encouraged to use the mall for exercise in a controlled climate. 12-12
  • 13. 12-13 Drawbacks of Shopping Centers 1. Cost: there is now a "total rent" concept for costs that must be considered in a shopping center. These costs may include dues to the merchants' association, maintenance fees for the common areas, and the cost of special events or combined advertising. The most common rental is a basic rent, usually based on square footage, plus a percentage of gross sales (usually 5 to 7 percent). In total, these costs tend to be high and often discourage tenants
  • 14. 12-14 2. Restrictions imposed by the center’s theme. 3. Operating regulations. 4. Possible changes in the center’s owners and managers. 12-14
  • 15. 12-15 Plants and Physical Facilities  Manufacturing, or production  Usually involves making or processing materials into finished goods.  Success of a given location can hinge on the availability and cost of the proper mode of transportation.  Facilities  The buildings, machines and other equipment, and furniture and fixtures needed to produce and distribute a product.
  • 16. 12-16 Telecommuting and Remote Locations Needs Access to phone systems, services, and hig-speed internet. The best computer and technology you can buy. Access to pick up Fed Ex, UPS, and USPS. Access to purchase of supplies. Knowledge of year-round weather and transportation.  Four-wheel drive and gas efficient vehicle. Contingency plan for ding business.