Answer to Question #117349 in Management for bharat agarwal

Question

Assuming that the business idea would have a very encouraging response, suggest a suitable plant location to set up the beverage manufacturing. Give reasons for the same.

Answer 1

If it is already established that the business idea will have an encouraging response, I would recommend setting up the beverage plant in an area between the plantations and a small town. For a manufacturing plant, the main elements that drive production are access to raw materials, human resources, and market. The fact that the idea will have an encouraging response means that there is already an established market. Therefore, the location will have to be influenced by variables such as access to the raw materials, which in this case are the fresh fruits. Therefore, the plant has to be as close to the plantation as possible. At the same time, it should be strategically positioned in an area with access to human resources to drive operations.