Smu Mba Assingments

Topics: Good, Market, Marketplace Pages: 2 (343 words) Published: May 8, 2013
Q1. State the important considerations for locating an automobile plant? Ans: - Two broad Factors can Influence Plant location i.e.
1) General Factors:
* Availability of Lands: Availability of land plays a important role in determining the plant location . As if we don’t have lands we can’t build a Factory, though the area is good to work. * Availability of Inputs: While choosing a plant location, it is very important for the organisation to get the labour at the right time and good quality raw materials .Plant should be Located, Near Raw Material source, & to Reduce Transport cost & Consistent supply of goods to the customers. * Closeness to market places – Organisations can choose to locate the plant near to the customers market or far from them, depending upon the product they produce. It is advisable to locate the plant near to the market place, when the projected life of the product is low, the transportation cost is high, and the products are delicate and susceptible to spoilage and after sales services have to prompt. The advantages of locating the plant near the market places are: Consistent supply of goods to the customers and reduction of the cost of transportion. * Communication Facilities: Regions with good facilities of Postal & Tele communication links are Given Priority. * Infrastructure: Which plays an important role; the basic needs are Power Supply 24x7

Water Supply in huge amount requires in Process Industries like Paper, Chemicals, and Cement. Waste Disposal is the Key factor in Paper & Sugar cane Industries. Government Support needs for Policies of State Government, Local bodies concerning Labour laws, building codes & safety....
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