CASE STUDY – LOCATION, LOCATION , LOCATION

GROUP 2 MEMBERS :- ANKIT SAMANTRAY DEBASIS MISHRA ABISEK DEY JYOTI RANJAN MOHAPATRA SOUMYA RANJAN PARIDA ARPITA BAGH SARITA MANGARAJ SRABANI DALALI

INTRODUCTION-

Its about the three sites out of which we have to choose one for next production facility .

There are corporate real estate agents have come of with three potential facility locations .

Site 1 :- (Inner –city enterprise zone)Site 2 :- ( The Suburbs)Site 3 :-(In the Sticks)

Q.1 Discuss the Merits and concerns with each of the three Sites

Site 1 :- Merits:- 1. City tax exempt for 7 years . 2. The Abandoned factory was to increase in

productive capacity. 3. The location services are accepting for large

number of workers because its central location was nearly expressway.

Demerits:- 1. The Value of real estate has been steadily

decreasing by past four years. 2. Top managers have balked at the idea of

working proposed enterprise zone.3. The large companies of factory will closed for

two elementary schools within a couple blocks.

Site 2 :- Merits :- 1. One of the fastest growing countries in

America several years ago.2. Attractive place will add value and prestige

and will attract the customers . 3. Senior Managers are living nearby

Demerits:- 1. The current cost structure leave for plant at

only marginal profit because 70% decreased than the current side.

2. High product of price at a period of time. 3. It was difficult for number of workers are

hiring the corresponding act.

Site 3:- Merits :- 1. The largest number of customer is planning to build

and to create rural underdeveloped country. 2. The Cost of land is cheaper than suburban location.3. Labuor cost and tax are better. 4. Potentially attractive place to live like large parks,

lakes, and working trials.

Demerits:-1. The labor force does not meet forecast

growth trends.2. Delay in production cost.3. The major problems has effectively

coordination result form the distance involved.

Q.3 Develop a method for how your group will decide among the alternatives . That is, are you going to try to reach group consensus? Majority rules? There are 3 locations i.e. 1) inner city enterprise zone 2) the suburbs 3) in the sticks

Among the eight members of our group 5 members supported to location 3 and 2 members supported to location 1 & only 1 member supported to location 2. As the majority is for location 3 we decide that as the next production facility. Because :

a) here is a measure advantage in securing future contracts. b) The cost of the land is much cheaper than the suburban location. c) The attractive places in this locations are large parks, lakes, walking trials. d) It will take only 30 min drive away from the location to the city. e) The labour cost & real taxes is much better than the proposed enterprise zone f) The area will be developed rapidly in the next five to 7 yrs.

Q.4 Once you have made your decision, how will you justify your decision to someone who might have preferred another choice? As per our group location 3 will be the best alternative for the next

production facility because location 1 & location 2 are having some demerits.

Demerit of location 1 Value of real estate in location 1 has been steadily decreasing over the

past four years. The top manager have walked at the idea of working at the proper

enterprise zone. Some key managers have told that they will resign if they'll resign if

they'll transfer to location 1.

Location 2 (Demerit): 1) The labour cost is 25% higher for location 2 2) The marginal profit will be 70% lower than the

current site.3) The suppliers will squeeze the supply because of stiffer price competition from overseas manufacture

                                         As location 3 is having cheaper price than the sub urban location, the area is potentially attractive & the location is nearer to the city, the labour cost n area tax is better & also it is a developing area that's why we choose location 3 the best location for next production facility.