General locational factors and Specific locational factors for manufacturing organization and for Service organization.

Location decisions are complex, influenced by various factors. These can be broadly classified into: General factors and Specific factors for both manufacturing and service organizations.

General Locational Factors

These factors apply broadly to all types of organizations. They are further categorized into:

Uncontrollable Factors

These are factors that the organization has little to no control over:

• Government Policy: Regulations, taxes, incentives, and trade policies at various levels (local, state, national).
• Climatic Conditions: Temperature, rainfall, humidity, and other weather-related factors.
• Supporting Industries: Presence of related industries and suppliers in the area.
• Community Attitude: Local community’s perception of the organization and its impact.
• Community Infrastructure: Availability of housing, schools, healthcare, and other amenities in the community.

Controllable Factors

These are factors that the organization can influence:

• Proximity to Markets: Distance to customers and the ease of reaching them.
• Supply of Materials: Availability and accessibility of raw materials and components.
• Transportation Facilities: Availability of roads, railways, ports, and airports, along with their efficiency and cost.
• Infrastructure Availability: Access to utilities like electricity, water, gas, and communication networks.
• Labor and Wages: Availability of skilled and unskilled labor, along with labor costs and union presence.
• External Economics: Regional and global economic trends, currency exchange rates, and inflation.
• Capital: Availability of capital for set up and operations

Specific Locational Factors

These factors vary depending on the type of organization (Manufacturing vs. Service)

For Manufacturing Organizations

Manufacturing locations prioritize cost minimization. Factors are divided into:

Dominant Factors

• Raw Material Availability and Cost: Availability of raw material that is essential to production, along with the costs associated with it.
• Transportation: Cost of raw material, and cost of distribution of finished goods.
• Energy and Utilities: Availability and cost of essential resources like water, power and gas.

Secondary Factors

• Labor Costs and Availability: Availability of skilled and unskilled labor, and the costs associated with them.
• Taxes: Property tax, income tax etc
• Community Characteristics: Factors such as attitude towards industries, educational infrastructure etc.
• Environmental Impact: Pollution, noise etc

For Service Organizations

Service locations focus on maximizing revenue. Factors are divided into:

Dominant Factors

• Volume/Revenue:
  • Purchasing Power: The customer-base's ability to buy products and services.
  • Competition: Number and strength of competitors in the area.
  • Advertising: Effectivenss of advertising and other promotional tools.
• Physical Quality:
  • Parking/Access: Ease of access to the facility.
  • Security/Lighting: Perceived safety and security.
  • Image: General appearance and image of the service location.

Secondary Factors

• Cost Determinants:
  • Rent: Cost of rent in the area
  • Management Caliber: The experience and skills of the management.
  • Operation Policies: Business practices like operating hours and wage rates.

Category	Factors
General (All)	Uncontrollable: Govt. Policy, Climatic Conditions, Supporting Industries, Community Attitude, Community Infrastructure
	Controllable: Proximity to Markets, Supply of Materials, Transportation, Infrastructure, Labour/Wages, External Economics, Capital
Manufacturing	Dominant: Raw Material, Transportation, Energy/Utilities
	Secondary: Labor Costs, Taxes, Community, Environmental
Service	Dominant: Volume/Revenue (Purchasing Power, Competition), Physical Quality (Parking, Security, Image)
	Secondary: Rent, Management Caliber, Operation Policies