Exam 14: Choosing the Right Location and Layout

Which of the following is the greatest advantage of operating a home-based business?

Ergonomics, the science of adapting work and the work environment to complement employees' strengths and to suit customers' needs, is an integral part of a successful layout.

When designing the layout of a store, office, or plant, a business owner's primary focus is usually on ________, however, it should be on ________.

When analyzing the labor supply, a small business is concerned only with the level of education and training of the labor force in the area.

The location has far-reaching ramifications, such as high-tech companies that need:

Few decisions are as important for retailers as the choice of a location.

Mini-Case 14-1: Hungarian Heaven Mike Pontya has operated a neighborhood restaurant in Cleveland for over 30 years. Mike is planning to move to Arizona because of his health, and has put the business up for sale. The restaurant, which caters to the local trade, is well known in the Hungarian community of Cleveland as having the best authentic Hungarian food in town, but it is not in a traditional restaurant district. The restaurant has parking for 10 cars. Most customers park on the street. In the past, this was not a problem as there was a great deal of walk-in business from the neighborhood. Now, however, a new four-lane highway passes by the front door of the restaurant. There is a stoplight on the corner the restaurant is on to improve access to the highway for drivers emerging from the neighborhood. The flight to the suburbs has taken a heavy toll on the neighborhood. However, the restaurant is still doing well financially. Terry and Judy Kozma are brother and sister who share a love for cooking and a desire to be in the restaurant business. All of their relatives have encouraged them to quit their jobs and buy the restaurant. Terry and Judy were reared two blocks from the restaurant, and both worked part-time for Mike Pontya while in college. -What are the advantages and disadvantages of the restaurant's current location?

A store's external appearance plays only an insignificant role in identifying its "personality" or image to customers.

________ is the logical arrangement of the physical facilities in a business that contributes to efficient operations, increased productivity, and higher sales.

A ________ combines the drawing strength of a large regional mall with the convenience of a neighborhood shopping center.

The typical ________ is relatively small, contains from 3 to 12 stores, and serves a population that lives within a 10-minute drive.

Products with the highest markup should be placed:

List and discuss the eight options where retail and service businesses can serve their customers. What are their advantages and disadvantages?

When the cost of transporting a product is high relative to its value, locating close to the market a manufacturer plans to serve is critical.

When Jan and Detmar Wolcinski bought their 152-year-old house, they began remodeling it with one goal in mind: opening a bed and breakfast inn. The Chadwick Inn has exceeded the Wolcinski's expectations in its first year of operation, but now some neighbors are starting to complain about the increased traffic in their neighborhood and the late hours some of the Inn's guests keep. The Wolcinski's greatest challenge in the near future is most likely:

Identify and describe the goal/purpose of the three types of manufacturing layouts.

Creating a proper layout is important for retail operations, but not for manufacturers since manufacturing layout principles offer very little opportunity to improve efficiency or to increase productivity.

Common sponsors of incubators include government agencies and colleges and universities.

Retail layout is a never-ending experiment in which entrepreneurs learn what works and what does not and noting customer behavior and buying trends within the retail space is key.

Which of the following sections of a retail store would be most valuable?