Exam 14: Choosing the Right Location and Layout

The first phase in selecting a location is determining what regions of the country are experiencing substantial growth.

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

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?

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.

The choice of the location for a Tiffany & Company should be determined by the compatibility with the community it will serve.

Refer to the following information to answer the following questions. An entrepreneur considering two sites for a men and boys shop determines that she/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 who spend 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 #1 is $________.

Carmen is starting a childcare center. One location closed after a murder on the property and is near a neighborhood where there are many single parents. What city site selection factor might give Carmen problems with her childcare center?

The Lifestyle Market Analyst matches population demographics with age.

What are the advantages and disadvantages of the restaurant's current location?

The index of retail saturation ________.

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 city-related factors does Fred need to consider when evaluating this community as a location for a bar?

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

Clever business owners choose their location with an eye on the surrounding mix of businesses.

The most important factor when evaluating the labor supply in an area is its prevailing wage rate.

Many central business districts suffer from intense competition, high rental rates, traffic congestion, and inadequate parking facilities.

A location in a city offering a high quality of life can be attractive to the entrepreneur and may make ________ easier.

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

Discuss the various sources of information available to the small business owner for deciding in which region of the country to locate her/his business.

The ________ serves a large trading area (10 to 15 miles or more), contains from 50 to 100 stores, and draws customers from a population that lives within a 20- to 40-minute driving time.

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 ________.