Importance of location planning
Location blogspot.com//search?q=planning-first-primary-important">planning decisions are real of import for all types of describe of piece of occupation organisation units. This is because it affects the cost, selling price, as well as need of the product. It is a non-recurring heavy expenditure. Large companies receive got the assist of dissimilar professionals similar lawyers, accountants, environmentalist, etc. for selecting the proper location of plant.
Following icon lists 8 points that convey out importance of location planning.
Image credits © Prof. Mudit Katyani.
There is a ask or importance of location planning because it aids in:
- Expansion,
- Cost advantages,
- Discovery of raw-material,
- Additional facilities,
- Mergers,
- Political as well as social changes,
- Increasing production demand, and
- Avail taxation benefits.
Now let's hash out higher upwards points highlighting importance of location planning.
- Expansion : If the companionship wants to expand as well as diversify its activities, it volition receive got to search for a new-location for setting upwards its novel describe of piece of occupation organisation unit. In this case, it volition ask a location planning.
- Cost advantages : If an existing industrial plant life is non close a marketplace place, it volition increase the carry cost. This volition likewise increase the cost of the product. So, to avoid this, the companionship volition search for a novel industrial plant life location which is close the market. Such location of industrial plant life must hold upwards convenient to the employees as well as must receive got a regular provide of H2O as well as electricity. Overall, this volition upshot inwards reduction of the cost of production.
- Discovery of raw-material : Generally, a industrial plant life must hold upwards located at a house where raw-material is available. For example, if fossil oil as well as gas are industrial plant life at around place, as well as then a novel petrochemical industrial plant life has to hold upwards fix at that spot for processing purpose.
- Additional facilities : Plant location-related decisions volition receive got to hold upwards taken if the scheme wants additional facilities. New facilities may hold upwards necessary to better the character of work, to encounter ascent demands, etc.
- Mergers : blogspot.com//search?q=planning-first-primary-important">Mergers, joint-ventures, as well as blogspot.com//search?q=planning-first-primary-important">Amalgamations may atomic number 82 to get a novel unit of measurement at a new-location. It may fifty-fifty require closure of an existing industrial plant life unit. In mergers, production is to a greater extent than oft than non started at a novel house equally per the new-agreement.
- Political as well as social changes : Each political political party has its ain philosophy. Political changes tin atomic number 82 to changes inwards economical policies of the government. This may brand the existing location unattractive for doing business. Social changes may require production of eco-friendly goods. This may require a alter inwards location.
- Increasing production demand : Demand for the company's production may increase at other places, peculiarly inwards abroad countries. So, the companionship volition receive got to get a branch inwards around other seat down or inwards unusual countries. This would atomic number 82 to a search for novel location of plant.
- Avail taxation benefits : Government may denote around taxation benefits for starting a describe of piece of occupation organisation inwards rural areas. This may motivate entrepreneurs to get their describe of piece of occupation organisation units inwards remote areas.
