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Decide on a location for a new retail outlet

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Marilyn Helm Retailers is attempting to decide on a location for a new retail outlet. At the moment, the firm has three alternatives-stays where it is but enlarge the facility; locate along the main street in nearby Newbury; or locate in a new shopping mall in Hyde Park. The company has selected the four factors listed in the following table as the basis for evaluation and has assigned weights as shown:

Factor

Factor Description

Weight

1

Average community income

.30

2

Community growth potential

.15

3

Availability of public transportation

.20

4

Labor availability, attitude, and cost

.35

Helm has rated each location for each factor, on a 100-point basis. These ratings are given below:

Factor 

Present

Location Newbury  

Hyde Park

1

40

60

50

2

20

20

80

3

30

60

50

4

80

50

50

b) A new subway station is scheduled to open across the street from the present location in about a month, so its third factor score should be raised to 40. How does this change your answer?

Reference no: EM131349976

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