Industry Location Seminar
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Transcript of Industry Location Seminar
![Page 1: Industry Location Seminar](https://reader030.fdocuments.in/reader030/viewer/2022020307/55a951cd1a28abd70a8b47d8/html5/thumbnails/1.jpg)
Roshan Mani
11ECTEC047
B.Tech. VIII Sem
E.C.E. Deptt.
GCET, Bikaner
7-May-15 1Roshan Mani
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“A Plant should be located at a place where inhabitants are interested in its success, the product can be sold profitably and production cost is minimum.”
- Dr. Vishweshwarya.
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Location Theory is concerned with thegeographical location of economic activities.
It is synonymous to Micro-economic Theory.
Micro-economics is a branch of economicsthat studies the behavior of individuals andsmall impacting organizations in makingdecisions on the allocation of limitedresources.
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Demand, Supply and Equilibrium
Elasticity
Theory of Production
Cost of Production
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Proximity to customers
Business Climate
Total Costs
Infrastructure
Quality of Labor
Suppliers
Political Risks
Government Barriers
Trading Blocks
Environmental Regulation
Competitive Advantage
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Man
Money
Material
Means of Power
Momentum to early start
Market
Motive
Means of Communication
Management
Machinery
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Heavy-manufacturing facilities◦ large, require a lot of space, and are
expensive
Light-industry facilities◦ smaller, cleaner plants and usually less
costly
Retail and service facilities◦ smallest and least costly
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Government stability
Government regulations
Economic stability and growth
Exchange rates
Culture
Climate
Export import regulations, duties and tariffs
Raw material availability
Number and proximity of suppliers
Transportation and distribution system
Labor cost and education
Available technology Technical expertise Cross-border trade
regulations
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Labor
Proximity of customers
Number of customers
Construction costs
Land cost
Financial services
Climate
Modes and quality of transportation
Transportation costs
Proximity of suppliers
Education system
Raw material availability
Commercial travel
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Construction costs
Land costs
Raw material and finished goods shipment modes
Proximity to raw materials
Utilities
Labor availability
E.g. machines, engines parts
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Transportation costs
Proximity to markets
Frequency of delivery required by customer
Land costs
Easily accessible geographic region
Education and training capabilities
E.g. Manufacture of clothes, furniture, consumer electronics and home appliances
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Population
Accessibility
Visibility
Parking
Competition
Safety & Security
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Most efficient way to perform the task.
Develop a valid assessment of the current operations.
Improve Utilization & Productivity.
Present Workflow Process is seen clearly.
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For establishing any service unit we shouldtake into consideration of all the previousfactor which can affect the business unit &according to that select the location whichcan satisfy our most of the needs to run aservice unit.
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