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University of Waterloo AFM 231 Chapter 8: Location Strategies 1)What is the major difference in focus between a location decision in the service sector vs

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University of Waterloo

AFM 231

Chapter 8: Location Strategies

1)What is the major difference in focus between a location decision in the service sector vs. the manufacturing sector?

A.            The focus in manufacturing is on revenue maximization, while the focus in service is on cost minimization.

B.            There is no difference in focus.

C.            The focus in manufacturing is on labor, while the focus in service is on raw materials.

D.            The focus in service is on revenue maximization, while the focus in manufacturing is on cost minimization.

 

2. Which of the following statements is NOT true regarding location decisions?

A.            Location decisions to support a low-cost strategy require particularly careful consideration.

B.            Location decisions are important because location has a major impact on the overall risk and profit of the company.

C.            Location often has the power to make or break a company's business strategy.

D.            Once management is committed to a specific location, many costs become relatively easy to reduce.

 

3. Oliver Munday is the Senior Director for Worldwide Café Development for Hard Rock Café. How many years of experience did he have at the time of the video?

A.            20

B.            5

C.            60

D.            8

 

4. When searching for a foreign location, there are several early considerations. Which one of them listed below fulfills that requirement?

A.            political risk

B.            city or suburb

C.            pre-tax income

D.            population under 25

 

5. When deciding where to locate a Hard Rock Cafe, Oliver Munday relies heavily on

A.            his boss.

B.            ArcGIS.

C.            his own inspection and 'feel' for the location.

D.            Esri.

 

6. To determine whether to purchase land and build or remodel existing facilities, Mr. Munday utilizes which of the programs listed below?

A. investment analysis B. break-even analysis

C. theory of construction D.bottleneck analysis

 

7. Which of the following is NOT a key success factor in the country location decision?

A. labor productivity B. zoning restrictions

C. government rules

D. location of markets

 

8. What term refers to the location of competing companies near each other?

A. battling B. clustering

C. centralizing

 

D. neighboring

 

 

9. A technique for making an economic comparison of location alternatives is referred to as

A.            the transportation model.

B.            locational cost-volume analysis.

C.            the center-of-gravity method.

D.            the factor-rating method.

 

10. Which of the following methods is a mathematical technique used for finding the best location for a single distribution point that services several stores or areas?

A.            center-of-gravity method

B.            factor-rating method

C.            transportation model

D.            locational cost-volume analysis

 

11. The transportation model

A.            determines the best pattern of shipments from several points of supply to several points of demand.

B.            uses both qualitative and quantitative factors.

C.            finds the location of a single distribution center that minimizes distribution costs.

D.            determines the crossover point between two different locations.

 

12. Which of the following is NOT one of the four predictive variables in La Quinta Inn's regression model that predicts motel selection behavior and success of a site?

A.            median income levels

B.            the number of hotel rooms in the vicinity

C.            the location of nearby colleges

D.            the state population per inn

 

13. Which of the following is NOT identified in the text as one of the eight major determinants of volume and revenue for the service firm?

A.            quality of management

B.            operating policies of the firm

C.            competition in the area

D.            level of advertising expenditures

 

14. Which of the following techniques might a service or retail organization use to make a location decision?

A.            traffic counts

B.            transportation method

C.            crossover charts

D.            locational cost-volume analysis

 

 

15. Which of the following organizations used its geographic information system to create a demographic profile of what a typically successful neighborhood for its location looks likelong dashmostly in terms of income and ages?

A.Home Depot

B.Jo-Ann Stores

C.Carvel Ice Cream

D.Arby's Carvel Ice Cream