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Factors&techniques influencing location decisions (Qualitative factors…
Factors&techniques influencing location decisions
Quantitative factors
Transport costs
Market potential
Labour costs-lower wage rates overseas discourage labour to work there.
Government grants-act as incentive
Site and other capital costs such as building or shop fitting costs
Qualitative factors
Room for further expansion
Managers' preference
Safety
Labour supply
Ethical considerations
Environmental concerns
Infrastructures
Other factors
The pull of market
Planning restrictions
External economies of scale
Multi-site locations
Techniques
Investment appraisal
Payback method
Percentage of annual profir
Break-even appraisal
The lower the break even level, the better the site
Profit estimates
Site with highest annual potential profit identified