Explain Involve Or Importance Of Place Planning

Importance of location planning

Location planning decisions are real of import for all types of job concern units. This is because it affects the cost, selling price, in addition to need of the product. It is a non-recurring heavy expenditure. Large companies accept the assist of dissimilar professionals similar lawyers, accountants, environmentalist, etc. for selecting the proper location of plant.

Following picture lists 8 points that choose out importance of location planning.

Image credits © Prof. Mudit Katyani.

There is a require or importance of location planning because it aids in:

1. Expansion,
2. Cost advantages,
3. Discovery of raw-material,
4. Additional facilities,
5. Mergers,
6. Political in addition to social changes,
7. Increasing production demand, and
8. Avail taxation benefits.

Now let's speak over to a higher house points highlighting importance of location planning.

1. Expansion : If the companionship wants to expand in addition to diversify its activities, it volition possess got to search for a new-location for setting upwardly its novel job concern unit. In this case, it volition require a location planning.
2. Cost advantages : If an existing flora is non close a marketplace place, it volition growth the carry cost. This volition likewise growth the cost of the product. So, to avoid this, the companionship volition search for a novel flora location which is close the market. Such location of flora must endure convenient to the employees in addition to must possess got a regular furnish of H2O in addition to electricity. Overall, this volition lawsuit inward reduction of the cost of production.
3. Discovery of raw-material : Generally, a flora must endure located at a house where raw-material is available. For example, if stone oil in addition to gas are constitute at unopen to place, in addition to hence a novel petrochemical flora has to endure ready at that topographic point for processing purpose.
4. Additional facilities : Plant location-related decisions volition possess got to endure taken if the organization wants additional facilities. New facilities may endure necessary to ameliorate the character of work, to regard ascension demands, etc.
5. Mergers : Mergers, joint-ventures, in addition to Amalgamations may atomic number 82 to laid out a novel unit of measurement at a new-location. It may fifty-fifty require closure of an existing flora unit. In mergers, production is generally started at a novel house every bit per the new-agreement.
6. Political in addition to social changes : Each political political party has its ain philosophy. Political changes tin atomic number 82 to changes inward economical policies of the government. This may brand the existing location unattractive for doing business. Social changes may require production of eco-friendly goods. This may require a alter inward location.
7. Increasing production demand : Demand for the company's production may growth at other places, peculiarly inward abroad countries. So, the companionship volition possess got to laid out a branch inward unopen to other solid soil or inward unusual countries. This would atomic number 82 to a search for novel location of plant.
8. Avail taxation benefits : Government may denote unopen to taxation benefits for starting a job concern inward rural areas. This may motivate entrepreneurs to laid out their job concern units inward remote areas.