Answer to Question #194540 in Management for kriti sharma

Question

What are various decision criteria for deciding a location for a business setup? Explain these

decision criteria with reference to a location decision for setting up operations of a Large

Hospitality Setup (like a Resort. etc).

Answer 1

Location of a hospitality business will depend on availability of a market for the goods and services being provided and availability of raw materials. For example, the suitable location for a hotel would be close to the food markets to ensure fresh supplies since most foods are perishable. Similarly,there should be potential for customers such as tourists or the place is densely populated creating demand for the services. Finally one must consider the existance of similar businesses in that location. A lot of competition may result to failure of the start up.