Exam 14: Choosing the Right Location and Layout

Most business incubator residents are engaged in which businesses?

Entrepreneurs using the Census Bureau's Web site to evaluate potential locations have access to which of the following information about the residents in those locations?

Select six of the features that are important to a lean, efficient manufacturing layout and identify a potential benefit that they may offer the business.

A ________ contains from 12 to 50 stores and serves a population of 40,000 to 150,000 people.

Refer to the following information to answer the(se) question(s): An entrepreneur considering two sites for a men and boys' shop determines that he needs sales of $158 per square foot to be profitable. Site #1 has 13,500 potential customers who spend an average of $160.20 per year on men and boys' wear. Two competitors occupy 14,200 square feet of space. Site #2 has 10,800 potential customers spending an average of $152.10 per year on men and boys' wear. One competitor has 10,000 square feet. -The index of retail saturation for site #2 is:

Mini-Case 14-4: "We're Moving On Up" Mike and Earl Moore, owners of College Men's Unlimited, have just signed a five-year lease in the new College Town Mall. The new mall is ideally located for their business-a short walk from campus and only two blocks from downtown. The far side of the mall is bounded by the most prestigious homes in the city. It will be opening in five weeks and Mike and Earl are lucky to have such a prime spot. Ray Thomas, their banker, called them last Wednesday with word that the store, which had agreed to take the space they just leased, had canceled. Eighteen months ago when the mall had put this location up for lease, they were not in a financial condition to make a commitment. In the last 18 months, however, business has been exceptional. The city has grown and the college has experienced expanded enrollments. By next Monday morning, Mike and Earl must provide the mall developer with a complete layout for their new store so the developer can assign an emergency work crew to complete the store for the grand opening. College Men's Unlimited is a full-line men's store offering middle- to upper-quality traditional men's wearing apparel. The present location is an old two-story house that Mike and Earl converted into their combination business and living area. The house has 4,000 square feet of area, 3,600 being used for the store, and the rest for a three-room apartment. The new store has a 30-foot front and is 70 feet deep. The mall developer is willing to put up walls for storage and office space wherever they wish. -What other considerations should be included in the layout?

The average community net income is the key factor in Reilly's Law of Retail Gravitation to determine the point of customer indifference.

When conducting a regional evaluation, one of the first places an entrepreneur should turn for information is the U.S. Census Bureau.

The wise small retailer separates selling and nonselling activities; she does not waste valuable selling space with nonselling activities.

Mini-Case 14-3: Custom Cars, Inc. Al and Helen Wise have a love affair with cars. After collecting and restoring cars for a number of years, they decide to form their own "kit car" company. This type of company sells "kits" to people who want to build their own functioning replicas of famous or collectable cars. About 60 percent of their business is selling the kits, 10 percent is conducting classes and seminars on assembling the kits, and the remaining 30 percent is actually building the cars for the customers. Their business has three distinct manufacturing issues. The production of the car kits, the assembly of the custom cars for owners who want them but do not have the time to do the work themselves, and the "assembling and selling" training seminars on how to put the cars together. -Explain which manufacturing layout would be best for each of the three manufacturing issues the Wises face.

The primary reason for establishing a business incubator is to enhance economic development in an area and to diversify the local economy.

Geographic concentrations of interconnected companies, specialized suppliers, and service providers that are present in a region are called:

In small stores, every portion of the interior space is of equal value in generating sales.

The index of retail saturation:

Studies and experts have concluded that changes in office design have a direct impact on workers':

The typical neighborhood shopping center contains from 3 to 12 stores and serves a population that lives within a 10-minute drive.

The key to finding a suitable location is identifying the characteristics that can give a company a competitive edge and then searching out potential sites that meet those criteria.

Mini-Case 14-2: "It's a Great Location for a Bar" Fred Stanford has just completed bartenders' school in Los Angeles and is ready to build a life for himself. Sunday's paper has an ad in the business opportunities section for a bar in Mesa Verde, Colorado. Fred has heard that the West is a high growth area and the quality of life in Colorado is very good. Fred's best friend, Carl, begins to ask Fred some questions about his new idea. "To begin with, Fred, where is Mesa Verde, Colorado?" Fred decides to call the telephone number in the ad and is put in touch with Ansel King, a business broker located in Pueblo, Colorado. When asked where in Colorado Mesa Verde was, Ansel was prompt to point out that it was only 35 miles from Pueblo on the Interstate and has a population of nearly ten thousand. "Fred, this town is a great location for a bar, and I have just the kind of deal for a young man like you looking to get started." -What publications could Fred use to investigate whether or not this is a good region for this bar?

Which of the following is an advantage of locating in a central business district?

________, published annually, provides a detailed breakdown of population, retail sales, spendable income, and other characteristics for census regions, states, metropolitan areas, counties, and cities. It also includes analyses of changes in metro markets, descriptions of newspaper and TV markets, and summaries of sales of certain merchandise.