The issue in which a business will be established is not an easy thing to solve. In general, there are several other conditions that eventually may lead to problems determining the location of the business. We know that several factors or conditions include : business expansion, decentralization, economic factors, and type of facility.
1. Extension or expansion of business is something that most often lead towards the management of problems determining the location. An effort will ultimately expand its business systems if : business facilities are already being felt far behind, market demand (market demand) to grow and develop beyond the reach of existing production, and service is inadequate and does not satisfy the consumer.
2. Decentralization is a process in which a split-share business located in several places, with functions and responsibilities the same. This process tends to apply mainly to businesses big and strong.
3. Economic factors (changes in the market, labor supply, etc.
Basically the most ideal business location is situated at a place which eventually could provide a low production cost and maximum profit. In other words, the best location of a business is the location where the unit cost of production and distribution process will be low, while prices and sales volumes of products will be able to generate big profits for the company. Business site selection is an important decision, because mistakes are made ??it is not possible to immediately corrected without losing the investment is already embedded as well as additional capital / investment to look for alternative locations elsewhere.
4. Type of business facilities also determines the choice of business location. Some types of business include : Heavy industry, Medium Industrial, Warehouse and Distribution Center, Industrial and retail services.