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Site Selection and Layout Planning


Site Selection and Layout Planning CH 9 E-Businesses The layout of an e-business depends on its site and its operations. If the e-business ships products, storage and ... – PowerPoint PPT presentation

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Title: Site Selection and Layout Planning

Site Selection and Layout Planning
  • CH 9

9.1 Objectives
  • List the factors involved in deciding on a
    community in which to locate a business.
  • Identify the factors to consider when selecting a
    business site.
  • Describe the resources that can be used in
    finding potential business sites.
  • Explain the steps involved in analyzing potential
    sites for a business and choosing between those
  • Describe the advantages of starting a business at
    home or in an incubator.

Factors in Community Selection
  • As an entrepreneur, the decision of where to
    locate your new business is an important one.
  • A location can determine who sees your business
    and how easily customers can get to it.
  • Factors to consider when selecting a community
  • economic base
  • financial incentives
  • population makeup
  • labor supply

Is the Economic Base Favorable?
  • ECONOMIC BASE the major industries that provide
    employment in an area
  • First, you should determine the communitys
    economic base
  • That base can be either primarily industrial or
    primarily service-oriented
  • What is major source of income in a community?
  • Is it industrial, service oriented or some other
  • source of income?
  • Is this income growing or shrinking?

Are There Financial Incentives?
  • incentive a reward or advantage that helps
    businesses, including lower taxes, cheaper land,
    and employee training programs
  • A community may try to attract new businesses to
    locate there by offering a special incentive.
  • Incentives include Lower taxes, cheaper land
    and employee training programs.

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What Is the Makeup of the Population?
  • Trends such as aging populations or young
    families can affect businesses.
  • These trends determine who will spend, how much
    they will spend, and what types of products or
    services they will want.
  • Demographics and population size can tell you if
    a location matches your target market.

What Is the Makeup of the Population?
CENSUS TRACT a small geographic area into which
a state or country is divided for the purpose of
gathering and reporting census data. Access
the Census Bureaus Census 2010 Web site to
research the demographics of a census tract that
interests you.
Does the Labor Supply Match Your Needs?
  • When considering a community, consider your labor
    needs and how well the local labor pool meets
    those needs.
  • Business owners need to consider
  • how many employees they need
  • If the labor pool meets their needs
  • if the available pool has the appropriate skills

Criteria for Site Selection
  • Once you determine that a community is suitable
    for your business, you can begin looking at
  • The factors to consider and the criteria used to
    judge sites vary with the type of business

Retail Business Considerations
  • Retail businesses need to determine their trade
    area in order to be accessible to their target
  • trade area the region or section of the
    community from which a business draws customers

Retail Business Considerations
  • Once you pinpoint a community you want to serve
    and determine your businesss trade area, examine
    these issues
  • number and size of competing businesses
  • nature of the competition
  • character of the area
  • accessibility and traffic

Service/Wholesale Business Considerations
  • Service and wholesale businesses have similar
    needs to those of retail businesses.
  • However, many service and wholesale businesses do
    not have customers coming to their business sites
    and do not need expensive, high-profile

Manufacturing/Extraction Business Considerations
  • Manufacturing/extraction businesses need to be
    accessible to sources of supply and
    transportation and are subject to local zoning
  • INDUSTRIAL PARK an area set aside in a
    community for industrial use
  • usually located close to major transportation

E-Business Considerations
  • Location and space are not major considerations
    for an e-business because electronic business
    sites can be located almost anywhere and require
    little space.
  • However, larger operations need more space for
    equipment, personnel, and shipping.

Locating Potential Sites
  • There are a number of ways to locate potential
    business sites.
  • Read the classified sections of newspapers.
  • Consult with realtors who specialize in business
  • Conduct visual surveys by driving through
    prospective communities.
  • Network with personal or business contacts.

Site Analysis and Decision Making
  • Once an entrepreneur identifies possible sites
    for a business, he or she must consider three
    things before making a decision
  • the surrounding area
  • the building
  • the costs of buying, building, or leasing

Surrounding Area Analysis
  • Surrounding areas should be evaluated by the
    same criteria used for site selection
  • number and size of competing businesses
  • nature of the competition
  • character of the area
  • accessibility and traffic

Building Evaluation
  • The building must be large enough to take care of
    present needs and to allow for expansion.
  • Check the buildings interior to see how it meets
    your needs and the exteriors construction,
    soundness, appearance, and parking.

Lease, Buy, or Build?
  • Most experts say that leasing
    is best for a beginning business.
  • Leasing limits liability
  • Leasing has the least amount of start-up costs
  • Leasing costs are tax deductable
  • However, buying or building is least expensive
    for a long-term investment

Making Your Decision
  • For each of the possible sites, compare these
  • cost
  • advantages and disadvantages
  • desirability

Alternative Sites
  • Two sites that do not fit the traditional mold
    are the home-based business and the incubator.
  • INCUBATOR an enterprise that is set up to
    provide flexible and affordable leases, office
    space, equipment, management assistance,
    mentoring assistance, and access to financing for
    new businesses

Layout Planning
  • List the steps in layout planning that are common
    to all businesses.
  • Describe the layout needs for each type of
  • Discuss the final details of layout planning.

Physical Layout
  • A well-planned layout can mean a more efficient
    operation, a more appealing sales floor, and
    greater customer convenience.
  • LAYOUT a floor plan or map that shows the
    interior and exterior arrangement of a business,
    including such items as display cases, lighting
    fixtures, traffic patterns, landscaping, and
    parking spaces

Physical Layout Six Steps in Layout Planning
Define the objectives of the facility.
Layout Needs and Possibilities
  • Although the steps in layout planning are the
    same for all businesses, the options and
    considerations are not.
  • Different types of businesses have different
    operational needs.

Manufacturing Businesses
production processes
production sequence
Layout Considerations for Manufacturing
space requirements
materials flow
environmental needs
Manufacturing Businesses Types of Manufacturing
Manufacturing Businesses
  • In a product layout, all machines and supporting
    activities are arranged along a product flow
  • As products come down the line, something is done
    to them at each workstation.
  • WORKSTATION an area in a business with
    equipment for a single worker

Retail Businesses
products to be sold
projected clientele
sales per square foot of selling space
Retail LayoutConsiderations
aisle exposure
sales value of area within store
product coordination
Wholesale Businesses
  • When planning the layout of a wholesale business,
    storage and space utilization are the most
    important considerations.
  • When planning for storage, follow these
  • Store popular items near shipping points.
  • Store items together that were received together
    and will be shipped together.
  • Provide a wide variety of storage space.
  • Assign storage space on the basis of handling
    ease and popularity.

Service Businesses
  • The physical layout of a service business depends
    largely on the specific service it provides.
  • There is no prescribed set of guidelines or
    patterns for these enterprises.

Extraction Businesses
  • Like service businesses, extraction firms have
    unique layouts.
  • They share a few common features an office area,
    storage areas for equipment and supplies, and the
    extraction business site itself.

  • The layout of an e-business depends on its site
    and its operations.
  • If the e-business ships products, storage and
    shipping areas are needed.

The Components ofan Effective E-Commerce Site
  • The Internet has developed into an enormous
    consumer network with many e-commerce sites.
  • A successful e-commerce site incorporates good
    content and design, offers credit card
    processing, and has a security certificate.

E-Commerce Site
  • payment gateway software that automatically
    processes credit-card information so that it does
    not have to be manually typed in
  • real-time transaction a process that instantly
    transfers funds from buyer to seller
  • security certificate a credential issued by a
    third-party company that assures the user that
    all transactions made on a Web site are private
    and safe
  • sticky content the information and features on a
    Web site that gives users a compelling reason to
    visit it

Finishing Touches
  • Once a business owner chooses a particular
    layout, he or she can begin planning the
    finishing touches.
  • Such details include planning interior design
    features, as well as alterations or improvements
    to the facade.
  • FACADE the face or front of a building

Planning for Office Space
  • You have two options to consider when planning
    office space
  • open office layout best if cost, space, employee
    supervision, or access to files and equipment are
  • closed office layout if privacy and noise
    reduction are of primary concern

Planning for Office Space
  • You can define the traffic patterns of an office
    space with appointments.
  • APPOINTMENTS the furniture, equipment, and
    accessories contained in a building
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