ERIC ED373225: Location. Unit 9. Level 2. Instructor Guide. PACE: Program for Acquiring Competence in Entrepreneurship. Third Edition. Research & Development Series No. 302-09.

25 Pages·1994·0.59 MB·English

by  ERIC

DOCUMENT RESUME
CE 067 059
ED 373 225
Location. Unit 9. Level 2. Instructor Guide. PACE:
TITLE
Program for Acquiring Competence in Entrepreneurship.
Third Edition. Research & Development Series No.
302-09.
Ohio State Univ., Columbus. Center on Education and
INSTITUTION
Trairing for Employment.
PUB DATE
94
25p.; For the complete set, i.e., 21 units, each done
NOTE
,three levels, see CE 067 029-092. Supported by the
International Consortium for Entrepreneurship
Education, the Coleman Foundation, and the Center for
Entrepreneurial Leadership Inc.
Center on Education and Training for Employment, 1900
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Behavioral Objectives; Business Administration;
DESCRIPTORS
*Business Educatio,.; *Business Skills; *Competency
Base.; Education; *Entrepreneurship; Learning
Activities; Postsecondary Education; Secondary
Education; Small Businesses; Teaching Guides
*Marketing Mix; *Program for Acquiring Competence
IDENTIFIERS
Entrepreneurship
ABSTRACT
This instructor guide for a unit on locating a
business in the PACE (Program for Acquiring Competence in
Entrepreneurship) curriculum includes the full text of the student
module and lesson plans, instructional suggestions, and other teacher
into this module
resources. The competencies that are incorporated
business in one's future.
are at Level 2 of learning--planning for a
Included in the instructor's guide are the following: unit
objectives, guidelines for using PACE, lists of teaching suggestions
and
for each unit objective/subobjective, model assessment responses,
overview of the three levels of the PACE program. The following
materials are contained in the student's guide: activities to be
completed in preparation for the un't, unit objectives, student
reading materials, individual and group learning activities, case
study, discussion questions, assessment questions, and references.
appropriate
Among the topics discussed in the unit are the following:
business locations, factors in selecting business sites, advantages
and disadvantages of different types of locations, and steps
in
selecting a business site.
(KC)
INSTRUCTOR GUIDE
UNIT 9
LEVEL 2
Unit 9
Location
Level 2
HOW TO USE PACE
Use the objectives as a pretest. If a student
is able to meet the objectives, ask him or
her to read and respond to the assessment
questions in the back of the "nodule.
Pitigritm for Acquiring.,
Competence in
gntreprenenrAip
Duplicate the glossary from the Resource
THIRD EDITION
Guide to use as a handout.
;Mk
CENTER ON EDUCATION
AND DRAINI02 FON EWLOYMENT
Research & Development Serks No.302-09
cou.000 Of EDUCATION
Use the teaching outlines provided in the
TNE ONO STATE UNIVERSITY
Instructor Guide for ass;-tance in focusing
The left side of
your teaching delivery
Objectives:
each outline page lists objectives with the
corresponding headings (margin questions)
from the unit. Space is provided for you to
Determine appropriate business locations.
add your own suggestions. Try to increase
student involvement in as many ways as
possibi, to foster an interactive learning
process.
be considered when selecting
factors
Identify
to
When your students are ready to do the
business sites for specific types of businesses.
Activities, assist them in selecting those
that you feel would be the most beneficial
to their growth in entrepreneurship.
different
Determine advantages and disadvantages of
Assess your students on the unit content
types of business locations.
You
when they indicate they are ready.
verbal assessments
may choose written or
Model re-
situation.
the
to
according
each module of
sponses are provided for
site.
Determine steps involved in selecting a business
While these are suggested
each unit.
PERMISSION TO REPRODUCE THIS
U S DEPARTMENT OF EDUCATION
valid.
responses, others may be equally
°Nice M Educat,o,,UPeseuch and ImprOvemenl
BY
MATERIAL HAS BEEN GRANTED
EDUCATIONAL RE SOURCES INFORMATION
CENTER (FRICI
---)6 This dOconsent has been IIIDIodut ed as
received Nom the person or organitalion
onginating it
( ' Minor changes have Oeen mule 10 tnnuovp
repIOduction Quailly
2
Poinis of view or opinions WINO rnlh,50CrCu
TO THE EDUCATIONAL RESOURCES
Tent do not neressahls represent official
BEST COPY AVAILABLE
INFORMATION CENTER (ERIC)
OE RI posaion Or Dow y
Teaching Suggestions
Objectives
1. DETERMINE APPROPRIATE
BUSINESS LOCATIONS
Lead an open discussion about the importance of business loca-
How important is the right busi-
tion. Have students offer their insights on the business success
ness location?
factors for retailers, wholesalers, service firms, and manufac-
turers respectively.
2. IDENTIFY FACTORS TO BE
CONSIDERED WHEN SELECT-
ING BUSINESS SITES FOR
SPECIFIC TYPES OF
BUSINESSES
Use an overhead or chalkboard to list the general factors af-
What general factors should be
fecting business location decisions (economics, competition,
considered when choosing a busi-
population, layout, and transportation). A useful approach is to
ness location?
first list success factors as perceived by students; next, the
instructor may add other factors to complete the list.
Continue the above suggestion to list factors related to specific
What factors should you consider
businesses (retail, wholesale, services, and manufacturing).
for specific types of businesses?
3. DETERMINE ADVANTAGES
AND DISADVANTAGES OF
DIFFERENT TYPES OF
BUSINESS LOCATIONS
Encourage students to
This section is rich in new concepts.
What are some advantages and
definitions
create a file using note cards to keep record of new
disadvantages of business loca-
After students acquaint themselves with the new
and terms.
tions?
ideas, ask questions to outline advantages and disadvantages
(e.g., shopping center,
to various business locations
related
neighborhood malls, industrial parks, factory outlet malls, etc.).
4. DETERMINE STEPS INVOLVED
IN SELECTING A BUSINESS
SITE
Invite a local entrepreneur who has recently started a business.
What steps are involved in select-
Have him/her talk about his/her own experiences related to busi-
ing a business site?
Next, have students compare what the
ness location decisions.
in the text.
guest speaker talked about with the steps presented
Teaching Suggestions
Objectives
Introduce the concepts of real estate appraisal, audit, physical
What should be done to appraise a
inventory, condition of the inventory, price of the business, and
business location?
sales agreement. Understanding these terms is far more impor-
0
tant than memorizing them. A useful approach is to present the
facts that characterize the sale of a business. Encourage students
to use newly introduced concepts.
Acquaint students with sources of help available for selecting a
What help is available for select-
Classify the sources into free and paid categories.
business site.
ing a location?
Show what each category is comprised of (e.g., paid sources
planning commissions, consultants, private corporations, etc.;
free sourcesThe Statistical Abstract of the United States,
County and City Data Book, the Small Business Administration
Centers, etc.)
MODEL ASSESSMENT RESPONSES
airports, local zoning regula-
When analyzing potential locations, entrepreneurs consider railroads, highways,
I.
In addition to these issues, general factors characterizing
tions, proximity to suppliers and customers, etc.
assessed prior to making final decisions. These include econom-
a geographical area should be thoroughly
site.
ics, population, competition, public transportation, and the physical layout of the
(1) daily traffic volume,
Before selecting a business site, retailers should consider the following factors:
2.
businesses which draw cus-
i.e., how many cars pass by the location, (2.) compatibility and nearness to other
zoning regulations.
tomers, (3) parking facilities, (4) public transportation, and (5) local
established identity,
Wholesalers are interested in choosing a business site close to retailers with an already
highways, rail lines, and sometimes airports, as well
in an area with a growing population. Closeness to
ordinances are all of importance.
as local utility services and zoning
potential and existing
Service firms and retailers consider many of the same factors. However, proximity to
customers is a key issue.
and potential growth in the
Manufacturers assess accessibility, transportation factors, community services,
income trends, closeness to purchasers and sup-
area, such as labor supply and demand, population growth,
pliers, zoning regulations, etc. when considering locations sites.
firms. Some of
Business clusters tend to form when general and specific factors are favorable to many
3.
land development. There
these are specific factors, such as shared overhead costs, advertising, leasing, and
potential, new major factories opened in the area, new
are also general factors, such as population, growth
government projects, etc.
4
example, a supermarket in a shopping
Natural clusters appear to the benefit of variety of businesses. For
for the other retailers in the immediate
center will serve as a destination store and thus attract customers
area.
neighborhood center, industrial
Planned clusters form to take advantage of shared costs in a shopping center,
park, office complex, executive suites, etc.
(1) The Statistical Abstract of
decisions are:
Five sources which provide expert help in making location
4.
Small Business Assistance Centers (SBACs),
the United States, (2) The Survey of Current Business, (3) The
(4) bankers, and (5) consultants.
demographic data on population and
The Statistical Abstract of the United States publishes national annual
data fcr various products and services,
income. The Survey of Current Business publishes monthly sales
Business Administration offers a large
economic information and consumer buying habits data. The Small
make location decisions. Bankers offer
variety of publications which are meant to guide entrepreneurs who
Consultants, such as real estate developers, offer their
financial information and advise on credit issues.
services.
experience and expertise to entrepreneurs seeking comprehensive paid
Fffico.7.%;p7 ArAvrnmortsgrep,377
Progra
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Com
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s.$
business at three levels of learning, with experiences and
Incorporates the needed competencies for creating and operating a small
outcomes becoming progressively more advanced.
Understanding the creation and operation of a business.
Level 1
Planning for a business in your future.
Level 2
Starting and managing your own business.
Level 3
supporting the objectives, complete content in form of answers
Self-contained Student Modules include: specific objectives, questions
the full text
activities, group activities, module assessment references. Instructor Guides include
to the questions, case studies, individual
and other resources. PACE,Third Edition, Resource Guide includes
of each student module and lesson plans, instructional suggestions,
entrepreneurship assistance organizations.
teaching strategies, references, glossary of terms, and a directory of
Department at the
For information on PACE or to order, contact the Publications
Columbus, Ohio 43210-1090
Center on Education and Training for Employment, 1900 Kenny Road,
[phone], (8(X)) 848-4815.
by:
Support for PACE, Third Edition provided in whole or in part
The Coleman Foundation
International Consortium for Entrepreneurship Education
and
5
Center for Entrepreneurial Leadership Inc.
International Enterprise Academy
Ewing Marion Kauffman Foundation
on Education and Training for Employment
Center
The Ohio State University
UNIT 9
LEVEL 2
Location
Your Potential
Nature of
The
Business
Global Markets
as an
Small Business
Business Plan
Opportunities
Entrepreneur
Help for
Pricing
Types of
Financing
Marketing
the
Strategy
Analysis
the Business
Ownership
Entrepreneur
Human
Business
Legal
Promotion
Selling
Resources
Management
Issues
Risk
Customer
Financial
Record
Operations
Management
Credit
Analysis
Keeping
Program for Acquiring
Competence in
Entrepreneurship
II
CENTER ON EDUCATION
AND TRAINING FOR EMPLOYMENT
Research & Development Series No. 302-09
COLLEGE OF EDUCATION
THE OHIO STATE UNIVERSITY
6
LOCATION
. . .
BEFORE YOUR BEGIN
Consult the Resource Guide for instructions if this is your first PACE unit.
1.
If you think
Read What are the Objectives for this Unit on the following page.
2.
instructor.
you can meet these objectives now, consult your
These objectives were met in Level 1:
3.
Explain the importance of "place" in the marketing mix.
Identify factors that affect site choices.
Identify sources of help available for selecting a business site.
If you need help with the
Look for these business terms as you read this unit.
4.
meanings, ask your instructor for a copy of the PACE Glossary contained in the
Resource Guide.
Location strategy
Appraisal
Open-air/enclosed malls
Audit
Physical inventory
Convenience goods
Revitalization
Income level
Shopping goods
Industrial base
Specialty goods
Investments
Zoning laws
Local ordinances
Training for Employment.
Copyright © 1994, Center on Education and
The Ohio State University. All rights reserved.
3
LOCATION
WHAT ARE THE OBJECTIVES FOR THIS UNIT?
Upon completion of this unit you will be able to
determine appropriate business locations,
identify factors to be considered when selecting business sites for specific
types of businesses,
determine advantages and disadvantages of different types of business
locations, and
determine steps involved in selecting a business site.
WHAT IS THIS UNIT ABOUT?
HOW IMPORTANT IS THE
RIGHT BUSINESS LOCATION?
For retail and service-oriented businesses
the importance of developing a thorough
Depending
on the type of business, location
location strategy cannot be overstated. This
can be a major factor in determining the suc-
business decision can ultimately determine
cess of the enterprise. The sales volume of
the success or failure of a business.
No
your business may be greatly affected by the
matter what type of business you are consid-
location of the business.
Some businesses
ering, an appropriate location will get you
must be located near their customers, while
started on solid ground.
for others, it is important to attract customers
to the business. A poor location means you
The focus of this unit is planning the right
must attract customers by means other than
business location. Topics include the impor-
convenience. These include reducing prices,
tance of the business location, general loca-
increasing promotions, or some other costly
tion factors, specific location factors, types
practice that may diminish profits.
of business locations, and assistance avail-
able for site selection.
There are businesses for which location is
For example,
important for other reasons.
They may
mail-order clothing companies.
seek a geographical location that offers tax
Q
4
of their way to visit a preferred dentist or a
incentives to businesses to relocate to their
TV repair shop. However, even among ser-
Because of the nature of their busi-
state.
vice firms, differences exist in the relative
ness, they do not need to be physically close
importance of the factors to be considered in
to their customers, but the incentives will
site locations.
improve the profit picture.
Manufacturing firms have the most restric-
When planning the location of your business,
If your business is
tive zoning limitations.
of
an important consideration is the nature
classified as a manufacturing business, check
Although
the business you will operate.
into zoning laws, shipping facilities, avail-
there are general factors to be considered for
ability of appropriate buildings, distance
locating any business, the importance of
from raw materials, and nearness to the
these factors varies with the type of business
All are important site
potential market.
operation.
considerations.
Easy access and traffic patterns are very
Selecting the right site is of vital importance
important for retail establishments.
Cus-
to the success of your business. The follow-
tomers should be able to reach these busi-
ing information will help you rate available
Ample parking
nesses from major roads.
sites as you study them, and to compare
Even the different
should be available.
these sites in terms of their suitability for
pedestrian traffic patterns within a shopping
center are important to owners of retail
your type of business.
businesses.
WHAT GENERAL FACTORS
Many studies of customer traffic patterns
Anyone planning a
have been completed.
SHOULD BE CONSIDERED
retail business should examine these studies.
WHEN CHOOSING A
Patterns that contribute to the success of
BUSINESS LOCATION?
theaters, service stations, drugstores, and
apparel shopsall vary in important ways.
As
more and more businesses enter the
Different factors are of primary importance
market, entrepreneurs have an increasing
when selecting sites for wholesale establish-
Rail and truck carriers should have
need to support proposed facilities with a
ments.
The wholesale establishment
market analysis. Five general factors should
easy access.
should be located near major highways or
be examined when choosing a business site:
Because of the nature of the
rail lines.
economics, population, competition, public
The first four
fixtures,
the
transportation, and layout.
and
equipment,
facilities,
number of good sites is often limited by
factors are the basic variables for a market
analysis. Layout is becoming a major con-
zoning laws and permits.
cern to entrepreneurs due to increased costs
Although being close to a shopping center
related to making changes in the physical
has advantages for many service businesses,
design of the facility.
customers are likely to seek out and travel
farther for a service. They will often go out
5
attract new businesses,
Basically, the analysis of the
another
Economics.
to
is
economic area assesses whether the market
factor business owners should consider.
is able to support an additional business
Data of sales by industry is provided by
In simple terms, the eco-
the U.S. Bureau of Census, Consumer
establishment.
nomic analysis of a geographic area estab-
Expenditure Survey and the U.S. Depart-
lishes whether there is sufficient demand in
ment of Labor, Bureau of Labor Statis-
tics Monthly Labor Review, the Sales
the local market to support a new business.
Therefore, employment, income, and
and Marketing Magazine and the Con-
all
retail/wholesale/service/manufacturing sales
sumer Buying Power Review are addi-
need to be investigated.
tional sources of information.
an important
Population.
Population
is
Employment is an important variable be-
variable in the market analysis.
Entrepre-
cause it determines the purchasing power
neurs should analyze past trends in popula-
of potential customers. The U.S. Census
tion growth, concentration, origins, buying
of Population provides data on employ-
habits, tenure (i.e., whether a family owns or
ment by industry, labor force, and unem-
rents a home or an apartment), and other re-
ployment rates. The Census data covers
lated aspects. For example, business owners
a long period of time, usually ten years.
can determine if there is a market need for a
However, the state employment
local
new facility and where it should be located.
security departments and the local plan-
The U.S. Census of Population offers data
ning commissions update this informa-
Current estimates are pro-
on past trends.
tion on a more frequent basis.
vided by planning commissions, as well as
state and local agencies. However, entrepre-
Income trends can be analyzed using the
neurs will need to make their own popula-
sources mentioned above. It is critical to
tion forecasts based on current and past
interpret income data correctly.
The
trends, zoning regulations, and city or county
average household size, the average in-
plans for their own community.
come per capita (per person), and the
average family income signal whether
Competition. The type and number of com-
the area has enough buying power to
is another important factor when
petitors
support additional businesses.
Often
The pre-
analyzing the market potential.
professional assistance
required
sence of major retail
to
is
industrial
centers,
evaluate income trends.
and department
chain
parks, franchises,
stores should be noted. An intense compe-
tition in the area shows that new businesses
Retaillwholesalelservicelmanufacturing
will have to divide the market with existing
sales trends offer information regarding
Consequently, there will be
businesses.
possible seasonal swings in the industry.
businesses which will not survive in the long
Studying the major employers in the
If you are not able to offer a better
run.
community will help the entrepreneur to
quality, competitively priced product, you
understand that to come extent, their suc-
might reconsider that particular
location.
cess is heavily dependant on the perfor-
Another critical aspect is the way buyers
mance of major companies in the com-
perceive the existing businesses, the quality
munity. The community effort put forth