How use factor rating method to assess location alternatives


Assignment task:

This is an assignment based on location strategies Using Tesla as the company. 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). Remember I don't know the company or the business.

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 all the numbers (as in the chapter).

When you select a city(s) refer to published statistics e.g. demographics, transportation, diversity etc.

Next, using well-researched data, do a Crossover Chart for Locational Cost-Volume Analysis - for the 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 crossover point for the highest profit. As always, I need to see a detailed explanation to justify the numbers - Don't assume that I understand Detailed analysis is more critical rather than page length.

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