Location Decisions using Data and GIS
Whether it is deciding on a warehouse, distribution center, store front, or manufacturing facility, management must consider input costs including transportation, wages, and prices of other resources. Gathering information and applying GIS tools can support a geospatial, data-driven strategy in identifying potential locations
For this assignment, consider a business expansion need. This could be for a store location or any of the other reasons provided above. You may want to consider the current firm you work for, a franchise, or a potential business need in your community.
Assignment #2: Location Decisions using Data and GIS
BUSU 620 Week #5 Assignment and Rubric
Length: 2-4 pages
Due: Week #5
Value: 100 Points for 10% of the total points
Format: Upload in the Blackboard Assignment Submission by Sunday of Week 5
Background: This week’s textbook reading included the topic of location decisions. Whether it is deciding on a warehouse, distribution center, store front, or manufacturing facility, management must consider input costs including transportation, wages, and prices of other resources. Gathering information and applying GIS tools can support a geospatial, data-driven strategy in identifying potential locations (CLO #1, CLO #3).
For this assignment, consider a business expansion need. This could be for a store location or any of the other reasons provided above. You may want to consider the current firm you work for, a franchise, or a potential business need in your community.
Directions:
1. Read chapter 12.3 “Location Decisions” in your textbook and the document from ESRI “GIS and Location Analytics Drive Business” provided in Week #5 Assignments. The document can also be found here: https://www.esri.com/content/dam/esrisites/sitecore-archive/Files/Pdfs/library/brochures/pdfs/gis-and-location-analytics-business.pdf
2. Watch the following video from the ESRI 2014 User Conference. The presentation includes the Director of Development and Engagement from Starbucks. In the video he provides insight into the GIS tools and data that support the innovative strategies implemented at the world’s largest coffeehouse chain.
https://www.youtube.com/watch?v=5QBBCN3j3RA
3. An additional resource you might find informative regarding site selection:
https://www.morebusiness.com/ah_busplanan/
Deliverable: In a Word document, provide the following:
· Introduction: Provide a brief overview of the business expansion you have in mind. Identify the type of expansion and the location(s) you are considering. You might want to consider explaining your role as management and ultimately who would be responsible in your firm for selecting the location.
· Body/Analysis: Identify what data you would prefer to have available when considering the new location. Be sure to relate your data needs to the resources and factors mentioned in the textbook. You do not need to find this data but consider what might be available. One example for retail locations might be population density. You can find an ArcGIS example here: https://hub.arcgis.com/maps/nation::usa-population-density/explore?location
In addition to the type of data, you might want to consider the following in your paper:
1. What could the data show to support a favorable decision?
a. Example could be that some retailers locate near competitors (Lowe’s and Home Depot), while others might search for new markets.
2. What might the data show to reject the location?
3. How would this new location benefit the firm?
4. How could marginal analysis be used (benefit vs. cost)?
5. Other economic variables you can think of?
a. Taxes, economic development incentives, etc.?
Remember, given GIS tools you will want to be specific about locations. For this example, it could be a specific street corner, city, or county.
· Conclusion: Summarize your research and findings regarding the use of GIS tools. Given the data and tools you identified, would you feel more confident making a location decision as manager?
Upload the Word document to Blackboard Assignments Week 5 folder. Make sure to cite the sources using APA format.
Rubric: Evaluation Criteria for Assignment #2