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ham

0450-22-O-N-13-4e

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TOPIC QUESTION - PAPER 1

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February 27, 2025 at 8:16:27 PM

Oct/Nov 2022

Version 3

4.0 Operations Management

4.4 Location Decisions

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YOUR ANSWER

Celeb's main motive to start a business is to make profits. So, he needs to consider the climate in his location. This is because if his location has a bad climate, his production process would be disrupted in the middle and secondly, better the weather more would be the amount of customers visiting a shop whether it is a tourist or a local. Secondly, he needs to choose an area where there is a high availability of labour as Celeb is selling handmade furniture. In order to recruit labours easily for a cheap amount, so he should locate his factory in an area where there is a high unemployment rate to keep the profit margin as much as high as possible. I would say that availability of labour would be the most important factor for Celeb as he is selling handmade furnitures. He will have a wide range of customers as he is selling his products in e-commerce

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6/6

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