PHYSICL FACTORS

Lecture By: Arif Agha

GCCQ
 Those factors (economic, social, legal, technological & political) or forces (both internal &

external) that collectively form the business environment… or

 It is the total of all forces which affect the organization and the business operations.
(Kotler & Armstrong 2004)

 Physical Factors are:

1. Business Location and Layout
2. Purchasing and Inventory Control
3. Production and Production Control
 Plant Location
1. Raw Material
2. Labour
3. Power & Fuel
4. Water
5. Transportation
6. Climate
7. Markets
8. Location of Competitors
9. Chances
10.Population and Style
11.Room of Expansion
12.Government Regulations
 Plant Layout

• The arrangement and location of production machinery, work center and

auxiliary facilities & activities for the purpose of achieving efficiency in
manufacturing goods.
1) Process Layout or Group Layout
2) Product Layout
3) Mercantile Layout
4) Commercial Layout