Location Strategy Bottom Line The location of production and distribution facilities depends on: o Local factors o Access

s to markets and suppliers The location of retail outlets depends on local market conditions Location Decision Factors Labor supply Fixed and variable costs Proximity to markets and suppliers Proximity to competitors (clustering) If foreign: culture, exchange rates, political risks Regression Model La Quinta Motels Predict profitability in candidates locations Four independent variables o Room reates in the area o Median income level o Local population per motel o Distance to nearby colleges Similar models used for o Gas stations o Convenience stores o Fast food resteraunts