Business location factors Facility location decisions are strategic , long term and non repetitive in nature.

Location decisions are affected by a) Internal factors technology used , the capacity , the financial position and the force required. b)External factors economic , political and social conditions in the locality Fixed and variable costs Efficiency Effectiveness Productivity Profitability When does a location decision arise ? a. new facility is to be established b. the facility or plant operations and subsequent expansions are restricted by a site , necessitating the setting up of the facility at a new site. c. establish additional facilities in new site d. industrial policy of central and state government , direction from court e. advantages of new site in comparison to old site Disadvantages of poor location 1. constant