Operation management Activity

1.What are the major factors that firms consider when

choosing a country in which to locate?

Here are some of the major factors that firms should

consider:

Market potential: The size and growth of the potential

market in the country are important factors to consider.
Firms should analyze the demand for their products or
services and assess the level of competition in the market.

Political stability and legal framework: The political

stability of the country and the legal framework, including
laws related to business operations, are important to
ensure a stable and predictable business environment.

Labor costs and availability: Firms should consider the

cost and availability of labor in the country, including
factors such as wages, skill levels, and labor laws.

Infrastructure and transportation: The availability and

quality of infrastructure, such as roads, ports, and
airports, and transportation systems are essential for
businesses to operate efficiently.

Taxation and incentives: The tax rates and incentives

provided by the government can significantly impact the
profitability of the business.

Cultural and language barriers: Firms need to consider the

cultural and language differences in the new country and
assess the potential impact on their operations and
communication.
 Exchange rates and currency risks: Firms should consider
the exchange rates and potential currency risks when
conducting business in a new country to ensure that they
can manage their finances effectively.

By considering these factors and conducting thorough

research and analysis, firms can make informed decisions
about where to locate their business.

2.Why shouldn't low wage rates, alone efficient to select a

location?

While low wage rates may seem attractive for businesses to

select a location, they are not the only factor to
consider. Other important factors such as infrastructure,
political stability, labor laws, taxation, and cultural
differences can significantly impact the success of a
business.

For example, a country may offer low wage rates, but if it

lacks adequate infrastructure or transportation systems,
the cost of doing business may still be high due to
increased transportation costs and longer lead times.
Similarly, a country with a volatile political environment
may pose risks to the business, such as potential
disruptions or instability that could negatively impact
operations.

Moreover, low wage rates may lead to lower-quality work,

high turnover rates, and difficulty in retaining skilled
employees, which can ultimately impact the productivity and
profitability of the business.
 Therefore, businesses should not solely rely on low wage
rates as a deciding factor when selecting a location, but
instead, conduct thorough research and analysis to consider
all relevant factors that could affect the success of their
operations.

3.What are the six layout design strategy?

● Fix location layout

● Process-oriented layout
● Office layout
● Retail or service layout
● Warehouse layout product-oriented layout

4.What layout innovations have you noticed with the recently

in retail establishment?

One layout innovation that has been noticed recently in

retail establishments is the use of self-checkout kiosks.
These kiosks allow customers to scan and bag their own
items, reducing the need for a cashier and potentially
speeding up the checkout process. The kiosks are often
placed in a dedicated area within the store, separate from
traditional checkout lanes, to create a more efficient and
streamlined process.

Another layout innovation is the use of mobile checkout

options, which allow customers to scan and pay for items
using their smartphones. This eliminates the need for a
physical checkout station altogether and enables customers
to make purchases from anywhere in the store. Retail
establishments may also use digital signage and displays to
guide customers through the store and highlight promotions
or new products.
 These layout innovations not only improve the customer
experience by making checkout faster and more convenient
but also provide cost savings for the business by reducing
the need for staff and creating a more efficient use of
space within the store.

5.What are the variables the manager can manipulated in

retail layout?

In a retail layout, managers can manipulate various

variables to create an efficient and attractive store
layout that maximizes sales and customer satisfaction. Here
are some common variables that managers can manipulate:

Merchandise placement: The placement of merchandise can

affect customer traffic flow and encourage customers to
browse and purchase certain products.

Lighting: Lighting can create a certain ambiance in the

store and highlight certain products or areas.

Music: Music can create a certain mood and enhance the

shopping experience for customers.

Signage: Effective signage can help customers find what

they are looking for and promote sales and specials.

Color and decor: The colors and decor of the store can
influence customer behavior and perception of the store.

Layout design: The overall layout design, including the

placement of aisles, displays, and checkout lanes, can
affect customer traffic flow and create an efficient and
attractive store.
By manipulating these variables, managers can create a
retail layout that not only looks appealing but also drives
sales and enhances the overall shopping experience for
customers.