FRANCHISING

Student Name: Espenida, Andrea T. Degree Program: BSBA-FM

Section: 3.1 BSBA-FM Cycle 1 Mobile Number: 09369308399
Professor Name: Jay Ryan M. Cruz Email address: 8200870@ntc.edu.ph

Task no. 3

Write an essay about What is the importance of having the correct location of
your business.

There are certain factors that are essential when determining a business location.
These include proximity, which refers to how near the business must be to the
market, the labor force, materials, and competition.

Location is very important in different kinds of businesses because there are a lot
of parameters that you have to take into consideration before or during the store
operations. The proximity of a firm to the market—basically, how close the
business must be to its customers—is an important consideration. The significance
of this will depend on the type of business being run. For example, a fish-and-chip
shop will need to be close to its customers because they will need to visit the
location to make a purchase. The fish-and-chips location has a great location
where customers can dine in with a parking area. As a result, they must choose a
location where their target market can make that purchase most conveniently. It
is important to be accessible to skilled labor at a location that potential
employees can reach readily. Because some of the greatest colleges educate
and train programmers and designers in California, tech corporations like Google,
for instance, have their headquarters there. This makes it a desirable location for
tech companies to set up shop. Google doesn't need to be close to its customers,
but some employees are necessary for the company to succeed. he proximity of
the materials means it is preferable for producers, such as Starbucks, to not have
to be close to the farms where their coffee beans are cultivated. Due to the large
savings in transportation and storage expenses, it is crucial for some enterprises to
be close to their raw material suppliers. Having a close relationship with their
clients has far greater power. To give customers a choice of alternatives, the
company should be located as far away from rivals as possible. However, for
certain companies, it is hard to avoid their competition because they must be
located close to their target customer. Both businesses are looking for the
locations with the most profits. Starbucks, for example, will have some flexibility in
choosing a site given that other coffee businesses will likely find the same areas
to be appealing.