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Factor Rating Method is a method that is used to find the most appropriate location for the business expansions. This method rate the locations by
Factor Rating Method is a method that is used to find the most appropriate location for the business expansions. This method rate the locations by considering the total weightage for each factor and a total effective weightage score is calculated for the selection of the most attractive location. All the important factors will be identified and after identification of the critical factors, a weightage score is given to all the critical factors. Further scores will be given to all the different factors. Then we will multiply the weightage score with the score given to critical factors. A location with the maximum weightage score will be the ideal location for the business expansion.
The factors that can matter for the location selection for Starbucks are given below:
The number of consumers
Location of store ie is it in the middle of the market or at a remote place
Distance from the nearby airport, railway station, or bus stand
Distance from famous monuments
Distance from natural mountains, or tourist attraction places
Is place affected by natural calamities
These factors will help in providing the bestsuited location for business expansion strategies in Cape Town and KwaZulu Natal.
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