Essay Example on Opening a Business: Location, Demographics, & More

The location of a business plays a significant role in determining the outcome of the venture (Robbins et al., 2018). Every company has its target customers, which is the essential factor business enterprises look into first before opening a new business. The demographics determine if it is worth the resources and money to be invested in it. Other factors like security, availability of employees, and competition also play a role. The process involved when opening up a new business from research to decision making can be tedious and time-consuming. However, with the advancement in technology, companies are using software to simplify their analysis. Esri, which is Geographical Information System software, has been essential to Wendy's in improving their decision making by providing the necessary data to make predictions and assess the risks and values before opening new stores.

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Consumer demographic dictates the amount of investment in a business. The average size of the families, education level, marital status, occupations of the inhabitants, and income level are significant demographic factors. They help in understanding consumer's cultural behaviors, which affect their purchasing patterns. The information also allows Wendy's to decide on the size and the number of employees needed in running the business.

The commercial mix is another critical component to consider before opening a business. The information provided by Esri helps the management to determine the suitability of their business to a particular customer base. It also helps in identifying the best methods or techniques to use in promoting their brand and products.

Another factor captured by a geographical information system is area safety. Protecting the physical business property from intruders, thefts, and other issues likely to affect the business negatively is essential. However, for a commercial venture to be successful, it needs to be located in a secure area not only to avoid accumulating losses but also to guarantee the security of its customers.

While competition can boost productivity and motivation for businesses, unhealthy competition can have adverse effects, which may cause losses to the company, as consumers tend to go for the cheapest products. The data received from Esri helps Wendy's management identify areas that exhibit unhealthy competition, which would not be profitable for the business.

The store decision making on the location is precise. Wendy's as a fast-food company requires capital investment in real estate and building (Robbins et al., 2018). Thus, certainty in decision making is essential. The reason is to avoid business closure due to unforeseen factors that would lead to losses for the business. Intuition can play an essential role in Wendy's decision making process by subconsciously picking up an idea missed during research. They can also use intuition together with experience to make a decision independent of the investigation or research conducted.

Conclusion

In conclusion, Esri, which is Geographical Information System software, has been essential to Wendy's in improving their decision making by providing the necessary data to make predictions and assess the risks and values before opening new stores. The location of the business, consumer demographics of the area, competition, and security are essential elements for consideration before opening new stores. All this information is provided by Esri. It also helps Wendy's management in being satisfied with the research regarding an area before making a decision.

Reference

Robbins, S., Coulter, M., DeCenzo, D., & Woods, M. (2018). Management (14th ed.). Pearson