Significance of Location
Location of a plant is an important entrepreneurial decision because it exercises a great influence on the costs of production and distribution. In some cases the costs of manufacturing and marketing may vary as much as 10 per cent simply on account of location. Even a well-managed firm may find it difficult to operate successfully it if is located at an unfavorable site. Many firm enjoy a location advantage due to thoughtful consideration and sound planning. indeed no industry can prosper unless it is located at place chosen from the point of view of maximum efficiency of production and distribution." An appropriate location is essential to the efficient and economical working of a plant whereas an inappropriate location may restrict the growth and efficiency of the enterprise.
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