Quiz 12: Obtaining and Laying Out Operating Facilities


Operating system comprises of three major factors. These factors are inputs, processes, and outputs. All the activities ranging from obtaining raw materials to delivering the final product to the customers is a part of business operating system. Some characteristics of an operating system are as follows: • It comprises of marketing, finance and operations. • It has a well-planned system for changing form, place or time. • It has an exact sequence for processing inputs into outputs. • It has special skillset, machines, or tools to make the change. • It comprises of the system to understand instructions and to identify goods The inputs of an operating system consist of materials, people, money, machines, data/information, and multiple other factors. These inputs are collaborated in a planned way to get the productive outcome. When a business starts, it requires all the inputs to start its process of marketing, finance, and operations. The outputs include goods, services, customer satisfaction, and employee satisfaction. The inputs are processed into outputs. The process of operation includes all inputs, processes, and outputs. In fact, the operation process is said to be effective if generated outputs are productive.

Location of the business is the foremost requirement which should be met with the customers' accessibility. Be it retaining the employees or be it retaining the customers, the location pays a major factor. Good location signifies a long-term stability of the business. Wrong location often leads to inadequate access to customers and employees. Some of the factors which affect the location's choice are as follows: • The work force or the team members who are required to take the business ahead should find the easy transport to reach the work place. • Utilities which include electricity, gas, water, and sewerage should be available throughout the day. • Vendors, suppliers, distributors should find the place convenient to visit and deliver their services. • Logistics and transportation facilities should not be hard to find. The required resources will be accumulated with the use of feasible transportation only. • The most important factor is the effect of taxes and government regulations. The location should be in the limit prescribed by the government. Failing to do so will lead to unnecessary high taxes. If the entrepreneurs take care of these things while planning their businesses, they will face less challenges and struggles after opening the store. Location of a business can't be changed easily, so it should be decided in advance which location will produce more fruitful results.

Retail stores are opened in the area which is accessible to all the people. Any people can be a customer for a businessman. The location which has a high traffic and a good parking facility draws more customers inside the store. While planning for a business idea, the location should also be found out simultaneously. The two most important factors in choosing a retail location are the type of location and the type of business. Detailed description of both the factors is given below: • The type of business determines the suitable location where the customers' foot fall remains high in all seasons. For instance, opening a multi cuisine restaurant near a university is surely going to witness a majority of the students coming in for refreshment. Similarly, shopping stores witness a high traffic where a comparison shopping can be done. • The type of location such as the downtown or, the commercial area is the perfect location to start convenience good stores and retail stores. People who come to buy something else end up visiting many stores present in the area. Thus, it is always beneficial to have stores in such locations. It can be concluded that retail stores are often made according to the convenience of customers. These are made to attract more of the customers so that the sales can be increased. Besides this the employees should also feel the location to be convenient to manage their daily travel. Little advance efforts while selecting a location makes a business fit for long-time survival.