Question

Two former surfers invented a material for surfboards that’s lighter and stronger than anything manufacturers use now. They have received funding to set up a production facility for surfboards with the new material and they want you to help them select a location. In addition to your recommendation, identify at least three factors that you considered in reaching your decision.

Answer 1

Answer:

When determining the location of a factory or warehouse, several factors are to be considered. The factors include:

1) Availability of raw materials

2) The targeted market size

3) Closeness to the target market

4) Transportation

5) Availability of water and power supply.

Explanation:

When a firm, manufacturing company or business is new and ready to expand or kick off, the first idea which comes to the mind of its owner(s) is identifying or selecting the region, locale or district where the factory is expected to kick start. Before determining the location of the factory, you have to identify the area in which your target market belong. For the former snowboarders who are planning on setting up a business of manufacturing snowboards, the determinant for this selection will be areas where:-

a) snow is available

b) there are interested snowboarders.

With these two main determinants, one can decide where he or she wishes to set up the business. Other factors may include:

1) Availability of raw materials

2) The targeted market size

3) Closeness to the target market

4) Transportation

5) Availability of water and power supply.