A business location strategy involves selecting a location that helps achieve business goals and objectives by considering factors like accessibility, target markets, and regulations. There are three main location strategies: intensive, selective, and exclusive. A business layout strategy is a plan for arranging physical space and resources to optimize efficiency. Key layout strategies include process-oriented, office, retail, warehouse, and product-oriented layouts. Factors like product flow, equipment, safety regulations, and workforce must be considered when developing a layout strategy.

1. LOCATION STRATEGY AND
LAYOUT STRATEGY
Presented by: Harrison
Torres

2. WHAT IS A BUSINESS LOCATION
STRATEGY?
A business location strategy is an organized plan for selecting the
location for starting a business to achieve its goals and objectives. It
aids in customer analysis, market segmentation, localization, and
business branding at large.
If you’re picking a location for your business, you’ll want to think
about things like accessibility to roads, utilities, and training centers.
Local and surrounding population demographics should be taken
into account as well.

3. REASONS WHY LOCATION IS
IMPORTANT FOR A BUSINESS
1. Target Market Reach - Proximity to target demographics, high-
traffic areas, and transportation hubs can enhance visibility and
footfall, leading to increased sales and revenue.
2. Competitive Advantage- a well-chosen location may offer unique
advantages such as lower costs, proximity to suppliers or
distribution channels, or access to specialized labor, which can
contribute to a competitive advantage in the industry.

4. REASONS WHY LOCATION IS
IMPORTANT FOR A BUSINESS
3.) Access to Resources and Talent- being in an area with a skilled
labor pool or specialized talent relevant to the business can enhance
operational efficiency and innovation.
4.) Regulatory and Legal Considerations:-Understanding and aligning
with the legal and regulatory environment of a location can mitigate
compliance risks and ensure smooth business operations.

5. REASONS WHY LOCATION IS
IMPORTANT FOR A BUSINESS
5.) Business Image and Branding- Choosing a location that aligns with
the business's target market, industry positioning, and desired brand
image can enhance credibility and attract the right customer base.
6.) Expansion and Growth Opportunities- Selecting a location that
allows for scalability and accommodates potential business growth
ensures long-term viability. It minimizes the need for costly
relocations or disruptions when expanding operations or entering new
markets.

6. FACTORS INFLUENCING LOCATION
STRATEGY
 Proximity to
clients/customers
Distribution network
Customer service
Accessibility to
resources
 Market research
 Cost of building
materials
• Transport cost
• Local Labor
• Relocation Cost

7. TYPES OF LOCATION STRATEGIES
There are three basic types of place strategy:
1.) Intensive: An intensive place strategy is when a
company places its product in as many stores as
possible. Candy companies often use this strategy, as
they place their products in supermarkets, movie
theaters, convenience stores and airports.
2.) Selective: A selective place strategy is when a
company places its product in only a few retail stores.
For example, companies that manufacture expensive

8. TYPES OF LOCATION STRATEGIES
(2)
3.) Exclusive: An exclusive place strategy is
when a company places its product in one
retailer. This is usually for luxury products that
require salespeople to convey a lot of
information about the product during the sale,
such as cars.

10. LOCATION ANALYSIS TECHNIQUES

11. WHAT IS A BUSINESS LAYOUT
STRATEGY?
 The process of arranging physical facilities and
resources within a facility to optimize efficiency and
productivity.
 A layout strategy is a plan that specifies how an
organization will use its space and resources to meet
its objectives efficiently. It is one of the key decisions
that determines the long-run efficiency of operations.

12. STRATEGIC IMPORTANCE OF
LAYOUT
Proper layout enables:
1. Higher utilization of space, equipment, and people
2. Improved flow of information, materials, or people
3. Improved employee morale and safer working
conditions
4. Improved customer/client interaction
5. Flexibility

13. SIX LAYOUT STRATEGIES
1.) Fixed- Position Layout
 large bulky projects such as ships and
buildings
2.) Process-oriented layout
deals with low-volume, high-variety
production (“job shop”, intermittent production)
3.) Office Layout
positions workers, their equipment, and

14. SIX LAYOUT STRATEGIES (2)
4.) Retail Service Layout
 allocates shelf space and responds to
customer behavior
5.) Warehouse Layout
 addresses trade-offs between space and
material handling
6.) Product Oriented layout
seeks the best personnel and machine use in

15. FIXED- POSITION LAYOUT
Design is for stationary project
Workers and equipment come to site
Factors Complicating a Fixed Position Layout:
- There is limited space at virtually all sites
- At different stages in the construction process,
different materials are needed – therefore, different
items become critical as the project develops.
- The volume of materials needed is dynamic.

16. PROCESS-ORIENTED LAYOUT
 Design places departments with large flows of
material or people together
Department areas having similar processes
located in close proximity
- e.g., All x-ray machines in same area

17. EMERGENCY ROOM LAYOUT

18. OFFICE LAYOUT
Design positions people, equipment, & offices
for maximum information flow
Arranged by process or product
Example: Payroll dept. is by process
Examples :
- Insurance company
- Software company

19. OFFICE LAYOUT

20. RETAIL/SERVICE LAYOUT
Design maximizes product exposure to
customers Arranged by process or product
Decision variables
1. Store Flow pattern
2. Allocation of space to products
Types
- Grid Design
- Fee- flow design

21. RETAIL/SERVICE LAYOUT – GRID
DESIGN

22. RETAIL/SERVICE LAYOUT - FREE-
FLOW DESIGN

23. WAREHOUSE LAYOUT
Design balances space (cube) utilization &
handling cost.
Store Flow pattern
Similar to process layout
- Items moved between dock & various storage
areas
Optimum layout depends on
-Variety of items stored
-Number of items picked

24. WAREHOUSE LAYOUT

25. PRODUCT-ORIENTED LAYOUT
In a product layout, the machines, material and other facilities
are placed as per the order of processing. It is often used when the
production is to be performed on a large scale.
Facility organized around product
Types: Fabrication line; assembly line

26. PRODUCT-ORIENTED LAYOUT

27. FACTORS INFLUENCING LAYOUT
STRATEGY
Layout strategy is influenced by several factors that need to be
considered to create an efficient and effective layout within a facility.
 Product design
Process flow of materials , information, and people throughout the
production or service processes.
Equipment and Machinery
Material Handling
Workforce
Safety and regulations

28. REFERENCES
Location Strategy
https://www.wealthgist.com/why-location-is-important-for-a-business/
https://www.indeed.com/career-advice/career-development/place-
strategy#:~:text=There%20are%20three%20basic%20types%20of%20place%20strategy%3A,company%20places
%20its%20product%20in%20one%20retailer.%20
https://www.iedunote.com/business-location-analysis
Layout Strategy: