A business owner wants to open a new office. Her clients include both businesses and independent consumers.
In 2–3 sentences, explain how range, market area, and threshold are relevant to her decision.
In 1–2 sentences, explain the theories or models she should use to guide her decision, considering that she provides both business and consumer services.
If she is opening an accounting office, what other factors might be relevant? Your response should be 2–3 sentences in length.
Any one want to actually help?
anyone have the multiple choice answers?
Range, market area, and threshold are relevant to the business owner's decision of opening a new office because they help determine the potential customer base and demand for her services. Range refers to the distance customers are willing to travel, market area defines the geographical area where the business can attract customers, and threshold represents the minimum number of potential customers needed to support the office.
The business owner should use the central place theory and the location theory to guide her decision. The central place theory helps determine the spatial distribution of services and their optimal location, while the location theory focuses on finding the best location based on factors such as accessibility, cost, competition, and market potential.
If she is opening an accounting office, other factors that might be relevant include the proximity to other businesses, the local economic conditions, the level of competition in the area, and the demographic makeup of the potential customer base. Additionally, she should consider the availability of skilled labor, accessibility to transportation, and the cost of living in the area.