In his article Your operation layout could be costing you money Jim Tarr presented the factors that should be considered while the layout. He argued that such changes might influence greatly the business, as well as the future revenue. However, often it happens that relocation has bad impact on the revenue and business’ development. Before writing the essay, I have read two article that present the relocation bad influence. This essay is aimed on presenting suggestions what would have made the relocation efficient.
The article Labor board drops case against Boeing after union reaches accord the author Steven Greenhouse analyzed the scandal that occurred when Boeing located its new aircraft producing plant in South California and not in Washington. The National Labor Relation Board stated that such actions violated the state laws. Besides, such decision of the company was not welcome by the employees. In my opinion, the company should not have relocated its plant. On the one hand, they have chosen to decrease the expenses, needed to built a plant. On the other hand, they will spend all the saved money for training the new employees. However, there are two suggestions that might be given to the company when it was relocating the plant. First, the company should have not focused only on saving money. There are different risk factors and the company could have lost more money that saved. Secondly, the company should have warned its employees about the relocation. Some of the employees could have moved to the South California as well, whereas the others could have found a new job. This would help the company avoid different complaints.
The second work that has been analyzed is called Retail location analysis: A case study of Burger King and McDonald’s in Portage and Summit Counties, Ohio. This is not an article, it is a thesis, presented by Nitti Dugal in 2007. The author of the thesis paid attention to the relation between the fast food restaurants’ revenue and social economic factors. Nitti Dugal has conducted a significant research that can help understand the peculiarities of relocation of the two fast food restaurants. The author presented not only data and statistical fact; the thesis contains the analysis of major scholar works written on this topic. On the one hand, the strong point of retail location of the fast food restaurants was that all the details were included: the specialists took into account social economic factors, demographic and geographic as well as political ones. On the contrary, they did not take into account the fact that a restaurant of a company competitor will be nearby. Hence, to make a good revenue, the companies should have decreased the prices or enlarged restaurant’s sizes. Another suggestion that can be given is that Burger King should have located its restaurant closer to the downtown. The author of the thesis showed that people tend to travel up to five miles to get to McDonald’s, whereas only some of them are willing to travel at all to get to Burger King restaurant. Hence, to make it more efficient, the analytics of the Burger King fast food restaurant chain should have found out where people gather the most: either is it a mall or a park and built the restaurant nearby. On the contrary, if there already is a McDonald’s restaurant, they should have chosen the second most visited place in a town.
Resources:
Dugal N. Retail location analysis: A case study of Burger King and McDonald’s in Portage and Summit Counties, Ohio. 2007. Web. 15 Dec 2013
Greenhouse S. Labor board drops case against Boeing after union reaches accord. 2011. Web. 15 Dec 2013
Tarr J. Your operation layout could be costing you money. N.d. Web. 15 Dec 2013
