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

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