Locating a business to enhance the customer experience
An Enterprise Rent-A-Car case study

Page 1: Introduction

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One of the most important decisions a business has to make is where to locate. The location of the business can have a significant effect on how it performs. Businesses will aim to operate from locations that provide the maximum competitive advantage. These decisions need to be reviewed regularly. By selecting the best location, a business could get more customers, improve its efficiency and...
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Page 2: Factors affecting the location of a business

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There are several reasons why an organisation might decide to open new branches or relocate its existing operations. It might want to expand the business, so it will open branches in cities where the organisation did not previously have a presence. A business might also want to restructure or modernise its operations. It might do this by bringing together some existing departments into new...
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Page 3: Return on investment

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When an organisation makes an investment, it is taking a business risk. When a company spends money on opening or moving to a new location, it will hope to see a return on this investment through increased profits. For example, by opening a new branch close to a buoyant or developing market, the business would hope to increase its sales. This in turn should lead to higher profits. Setting up...
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Page 4: Identifying a new location

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Before selecting a new location for a branch, Enterprise undertakes a detailed analysis. Initially, local managers identify the potential of possible new locations. This is done through a detailed process of forecasting based on existing information, such as how many customers currently use each branch. This process enables the business to spot where existing branches are at maximum capacity and...
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Page 5: Qualitative influences

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There are also other factors that influence Enterprise in its choice of location for a new site. It is important that safety requirements are met, for example, making sure the road conditions are suitable. Ideally, there should be the space to expand operations in the future, so managers assess if the local facilities and infrastructure will allow this. Managers also take into account...
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Page 6: Conclusion

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Setting up new branch locations gives Enterprise the opportunity to expand the business and improve on the quality of its customer service. The key factor that often differentiates a service business from its competitors is the quality of the care and attention given to customers. When looking for new sites, Enterprise aims to locate the business as close to customers as possible. This means...
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