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Week 4 Assignment 2

Assignment 2: CH 8: Locations Strategies – Due Week 4

· The company of choice was GM from the last mission

· This is an assignment based on location strategies (CH 8).

· Your objective is to select the next location for your business (use your Assignment 1 business or any other). Assume that your business does not exist in the selected states.

· Also assume that I have no idea about your industry and your business.

· There are 2 critical analyses in this assignment:

· Briefly introduce your business (you can use from your earlier assignment)

· Identify and explain the major factors that affect your business location decisions(also study the Key Success Factors – Fig. 8.1).

· Use the Factor Rating Method to evaluate location alternatives. I need you to look at 3 alternative states/cities in your analysis so you can pick the right kinds of factors e.g. State can offer tax incentives while the city has a railroad station.  YOU MUST USE A TABLE AND SHOW YOUR NUMBERS

· Next, using well researched data, do a Crossover Chart for Location Cost-Volume Analysis – for expected volume of output – you could use an expected annual output in units (e.g. number of new savings accounts, mortgages in a bank; new students in a school; customers in a restaurant or retail; new patients etc.

· Analyze the lowest costs between all 3 locations and then indicate the cross over point for the highest profit

· As always, I need to see detailed explanation to justify the numbers – Don’t assume that I understand

· Detailed analysis is more critical rather than page length.