Question

Explain the consequences of poor location decisions for a business.

Answer 1

Location is an important factor in doing a business. Mainly in line with the cost for production, it’s marketing and selling activities and kind of consumer at that place.

Wrong decisions of place choice can cost the company in many ways

1. May have increased cost of production
2. May have costly labor at that place
3. Rules of the government are not favorable and ease of doing business is not there
4. Not a proper warehousing facility
5. Not having a proper logistics and supply chain arrangement for the location
6. Irrelevant market for the goods being produced
7. People having less income to spend
8. Wrong climate for operation tasks to perform.