Exam 9: The Location Plan

You Make the Call-Situation 2 Is it possible to build a $1.2-million business in a town with only 650 residents? Duane Ruh did. Ruh, 49, cofounded and is now sole owner of Little Log Company, which manufactures log birdhouses and feeders in Sargent, Nebraska. Ruh believes it is all about treating your employees right. His 32 employees enjoy flexible schedules and ample personal time. Ruh's love for his employees and loyalty to the town of Sargent (where he employs 5 percent of the population) has paid off. Clients include 65 U.S. colleges, John Deere, and National Geographic Magazine. Failure isn't an option for Ruh and his employees. Ruh says, "I think if you really love something, you can't fail at it." (Source: Michelle Prather, "Talk of the Town,'' Entrepreneur, February 2003. http://www.entrepreneur.com/magazine.entrepreneur/2003/February/58828.html, accessed June 12, 2007.)

One of the extensions of the brick-and-mortar store is the contact-and-mortar strategy.

List and describe the different "Type of Customer Served" business models.

In a location decision, the raw materials availability factor is particularly important for a

A group of shared characteristics, behaviors, and goals that a firm follows in a particular business situation is known as a

The role of a Web site can range from merely offering content and information to enabling complex business transactions.

Personal reasons for choosing one's hometown as a location for a new business venture include the fact that

The Internet has brought new life and technology to the old-fashioned notion of

Unfortunately, choosing a hometown location for personal reasons is illogical.

Recent business-application technologies that enable home-based businesses to compete are also contributing to an increase in the number of these firms.

The heart of Electronic Customer Relationship Marketing is a

For small service or retail businesses, the top priority in location decisions is

Weather would be a significant factor in determining a business location and demand for all but which of these products?

Bottling machines and auto assembly line machinery are examples of general-purpose equipment.

A variation of the content model is sometimes called the ____ model.

Most of the time, customers go to a brick-and-mortar store with the intent of shopping or purchasing.

Recent observations have shown that most businesses are started in a new building.

Because of its complexity, modern technology has had no noticeable effect in expanding the number of home-based businesses.

You Make the Call-Situation 3 A business incubator rents space to a number of small firms that are just beginning operations or are fairly new. In addition to supplying space, the incubator provides a receptionist, computer, conference room, fax machine, and copy machine. It also offers management counseling and assists new businesses in getting reduced advertising rates and reduced legal fees. One client of the incubator is a jewelry repair, cleaning, and remounting service that does work on a contract basis for pawn shops and jewelry stores. Another is a home health-care company that employs a staff of nurses to visit the homes of elderly people who need daily care but who cannot afford or are not yet ready to go to a nursing home.

Which of the following is a true statement about location decisions?