Heizer render munson state that labor productivity

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marketed to the consumer utilizing the seven major factors that affect location decisions. Heizer, Render, & Munson state that “labor productivity, exchange rates and currency risk, costs, political risk, values andculture, the proximity to suppliers, and the proximity to competitors” are factors that affect location decisions (2017, P. 341-344). Each one of these factors play a significant role in the decision making process of where to build new restaurants. There are advantages and disadvantages to each factor, and operations managers need to be able to discern what the best course of action for the company is. One of the advantages of labor productivity is that depending on where a store is opened in a certain area, the operational costs may be cheaper based on the cost of living. This cannot be the only deciding factor, because even though the wages paid to employees may be lower, the work ethics of those employees may not produce intended results. Exchange rates and currency risk are another factor that must be taken into account when starting a new business. While there is an advantage to going to a country that have favorable exchange rates, this can backfire depending on the economic variation of that specific country. It would not be prudent to start a new business in a nation that has little economic
Running Head: DUNKIN’ DONUTS LOCATIONS stability. Costs are another factor that play a role in deciding where to start a new franchise. Heizer,

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