MIDLANDS STATE UNIVERSITY
FACULTY OF COMMERCE
DEPARTMENT OF BUSINESS MANAGEMENT
Name. Registration Number. Level. Programme.
Chapanda Kudakwashe Gracious R0645087 4.2 (PDP) Business Management
BM403 Assignment Question. Identify four locations in Gweru where you can start a preschool. Give the variables that you would consider in determining the most two ideal out of four locations where you would locate two of these preschools on the basis of your evaluation criteria.
Due date. 15 March 2010
Factors to consider when choosing a location of a crèche. Hashmi (2010) stated that, some preschool may run for one hour to two hours some run for half a day and others through out the day. Some are for children below two years and some for children between two and five years. For the purpose of this research I have been dealing with a preschool that run through out the day for example from 8am up to 4pm and the children are of ages between two and five. i. Availability of customers First of all one must make sure that the location being chosen for the business has customers. The customers here are small children. A preschool cannot be located in areas where there are no children for example single quarters where only unmarried people live (Kinsella 2008). The area might have high population density but without customers. The preschool should be located near the customers and the more the children in an area the more attractive the area to open a crèche. ii. Availability of water. According to Hashmi (2010), water is a very important resource for health purposes in the operation of a preschool. Water is needed for many reasons which consist some of the following: toilets, bathing, washing, and cooking. Toilets must always be clean because small children catch diseases easily. Children like to play with dirty most of their time and even when the area is paved the time that the children spent at the crèche makes it a necessity for them to bath. Sometimes children mercy up their clothes or blankets they use for midday rest, that means those clothes or blankets need to be washed. Even when nothing has happened the blankets must be smart always. Children must eat fresh food for health reasons so it is best to cook fresh food for the children rather than relying on food that the children are being given by their parents in the morning. Water may also be required for washing fruits, hands, drinking and for cleaning purposes. Water is a very critical resource for the crèche so it must be available in abundance.
Availability of electricity Hossein (2007), considered electricity as another factor to consider when locating a preschool. Modern day preschools are different from the earlier ones in many aspects. One aspect being that today preschools are meant to take care as well as educate the children. In educating the children facilities like computers, televisions, video games and radios are to be taken into consideration. Many children today prefer video games and modern toys and others prefer to watch cartoons on television. A preschool must be designed to create an entertaining environment for the children. In addition many parents prefer to enroll their children on a preschool where they can be happy. Electricity can be used for warming the rooms during cold seasons. So electricity is also to be considered when locating a preschool.
Closeness to parents Kinsella (2008), pointed out that, the preschool must be located close to the parents of the children. For example it can not be located at the outskirts of the city. The reason for this is that in case of emergence the parent of a child may be needed. For example when the child get sick and is to be sent to hospital. Parents must also come at some fixed times like lunch hours to see their children, bringing them extra food and the like. The child must always feel that his or her parent is close.
Availability of infrastructure Infrastructure may mean the roads buildings and so on. Kinsella added that, the area in which to locate a preschool must have a network of access roads for easy reach. The roads must be good and properly maintained. This is because some parents who are well up use cars to come with their children. Even those who do not have cars will prefer a preschool which can be easily accessed. Buildings to rent is also another issue to consider. The location may be good but if there are no buildings that might create a barrier. The rentals of the buildings are to be taken into account as well. In areas where rentals are high, our operational costs will increase forcing us to charge higher prices for our customers. As a result the preschool might loose customers to those offering lower charges.
Competition According to Hashmi, whenever entering into business one must look at the competition in that industry. High competition means a low market share and as a result the business might not be so profitable. Locating a preschool in an area where there are so many players requires the new entry to have a competitive advantage so as to gain the market share. Using the above factors to choose location Using the above factors I have tried to come up with the best location of a preschool from 4 locations, that is Senga, Nehosho, City Centre and Lundi park. Key for the scale 1- not favorable 2- favorable 3- very favorable 4- most favorable Table (a) Ratings for City Center Factors to consider Weight 1 29% 24% 19% 14% 9% 5% How favorable 2 3 4
Availability of customers Availability of water Availability of electricity Closeness to parents Availability of infrastructure Competition
City centre is 91% favorable. Available of water, electricity and customers makes it more favorable than the other locations. Though there is some competition, that limiting factor is covered by the advantages of this location. Table (b) Ratings for Nehosho
Factors to consider Availability of customers Availability of water Availability of electricity Closeness to parents Availability of infrastructure Competition
Weight 1 29% 24% 19% 14% 9% 5%
How favorable 2 3
Nehosho is 52% favorable. Most people in Nehosho are students who just come and go. They don’t bring their children to school. Many people are building their houses in Nehosho for business purpose and not to live there. The other limiting factor is water and electricity problems in Nehosho. Table (c) Ratings for Lundi Park Factors to consider Availability of customers Availability of water Availability of electricity Closeness to parents Availability of infrastructure Competition Weight 1 29% 24% 19% 14% 9% 5% How favorable 2 3 4
Lundi Park is 78% favorable. Water and electricity problems are better in Lundi park as compared to Senga and Nehosho. Most people in this area are permanent residents so the customers are available. Competition is there but not so severe. It is better to locate a preschool in Lundi park than in Senga and Nehosho.
Table (d) Ratings for Senga Factors to consider Availability of customers Availability of water Availability of electricity Weight 1 29% 24% 19% How favorable 2 3 4
Closeness to parents Availability of infrastructure Competition
14% 9% 5%
Senga is 51% favorable. Just like Nehosho, Senga area do not have many permanent residents. For example if one is looking for a house to rent, he/she can not search in Senga because the rentals are very high. This means most people in this area are students who have no option as to accommodation. Choice of location From the above four locations I will choose City Centre as my first choice because it is the most favorable location with a 95% favorable rate. What makes it the best location is that: i. There are no water problems in the city centre as compared to other locations like Senga and Nehosho. Water, as stated by Hashmi (2010) is the most critical resource needed for a crèche. Most areas in Senga and Nehosho are facing water problems and people sometimes walk long distances looking for water ii. Electricity as another important resource is also available in the city center. Senga and Nehosho may receive electricity during the night and on weekends when the children will be at home. Use of generators may increase the operational expenses thereby resulting in charging of higher prices to customers. iii. On the issue of customers I have based on the assumption that since nowadays most women are working, they may come with the child to crèche as they will be coming to work in town (to those who are working in town). This will also take into account another factor of closeness to parents. Parents may visit their children on lunch hours. This location will also mean that the parent will collect his or her child as soon as he/she finishes work reducing the waiting time for the children before collected. iv. Customers are available from the working parents from different locations. There are also people who live in town and those close to the city center such as railway workers.
Infrastructure is good in the City Center. No dust during dry season nor mud in the wet season. Buildings that can be rented for this purpose are also available.
My next choice is Lundi Park. This is because the location do not have water nor electricity problems which are major factors to be considered as stated by Kinsella when locating a preschool. The area do have the necessary customers as compared to Senga and Nehosho which are full of students. There are very few people in Senga and Nehosho during the absence of students. Justification for the selected locations Opening a preschool is a business and not a non profit making organization. Every business is done for some purposes that is the should be some objectives to enter into a business. One of the main objectives of doing a business is to make profits. A preschool as a business must be able to create profits for the owners. To make profits the business must have a large market share and operate at lower costs. Its not all about reducing costs but also providing quality services so as to attract more customers. How can I operate at lower costs? The answer is one should be close to all the necessary facilities. In the case of the preschool one need to be near electricity, water and customers. My choice to locate in the City Center and Lundi park is also meant to reduce costs of buying generators and drilling boreholes or buying water. On that issue there also some buildings that one can rent instead of starting from scratch. The second issue is quality. For an organization to produce quality goods or services it must have all the required resources. Locating a preschool in area where there are water problems means that the children will be at risk of diseases. Reference 1. Hashmi K (2010), Nursery Facilities, retrieved from www.eicom.net 2. Hossein (2007), ST Johns Crèche, retrieved from www.stjohnsa.com 3. Kinsella J (2008), Preschools in City Centers, retrieved from www.kidsafe.com
4. www.nhmrc.gov.au 5. www.recsport.sa.gov.au