2 Specific locational factors specifically required for manufacturing and

2 specific locational factors specifically required

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2. Specific locational factors specifically required for manufacturing and service organisations. Location factors can be further divided into two categories: Dominant factors are those derived from competitive priorities (cost, quality, time, and flexibility) and have a particularly strong impact on sales or costs. Secondary factors also are important, but management may downplay or even ignore some of them if other factors are more important. General Locational Factors Following are the general factors required for location of plant in case of all types of organisations. CONTROLLABLE FACTORS 1. Proximity to markets 2. Supply of materials 3. Transportation facilities 4. Infrastructure availability 5. Labour and wages 6. External economies 7. Capital. Figure 1: Factors influencing plant location UNCONTROLLABLE FACTORS Government policy Climate conditions Supporting industries and services
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