Site Selection Problem Of Z Decoration Company(Operation Management Case)

Location has always been the core of industrial development and the basis of the whole enterprise operation process.Good geographical location will not only bring a lot of economic profits to enterprises/companies,It also gives companies the opportunity to do something important and powerful;In contrast,enterprises/companies with relatively poor geographical location will encounter many problems such as few customers and poor business development at the beginning.Therefore,the choice of geographical location is very important to the operation of the enterprise/company.This is the first step of the operation of the whole company.If we take this step well,the development of the company/enterprise will have the next possible brilliance.Company Z is a decoration company established in 2018,which is mainly responsible for undertaking engineering decoration and family decoration.After more than one year of development,company Z quickly made the first pot of gold,and the recognition of customers is getting higher and higher.However,it encountered an unexpected epidemic.The original landlord reselled the shops due to financial problems.However,company Z can only move,Just as Z company also plans to expand,and relocation has become the top priority of the company.After a large number of visits and data analysis,president Zhang and his partners selected a shop located in Zhonghui Zijin City,Chengdong District,Xining city.It is the operation of this shop that makes president Zhang and his partners know the importance of site selection to the development of the company,that is,site selection is the basis for the development of the company,which determines the future development of the company.Through the analysis and comparison of various data of president Zhang’s different site selection,this case highlights the importance of site selection to the development of the company.In the meanwhile,it aims to provide some suggestions for similar companies on site selection,so that the students learning this case can fully understand the importance of site selection and do a good first step in the development of the company.The text consists of two parts.The first part of this case is to introduce the different business conditions,as Company Z was selected in a different location.First of all,the first site selection is also the beginning of the company.General manager Zhang and his partners,based on their previous experience,opened a shop after doing a good job in market analysis,and rented a shop in wanfangcheng,Chengzhong District,Xining city.The excellent shop location provides a guarantee for the good performance of the company.Secondly,the second site selection,the expiration of the company’s original site and the demand for expansion made the company move to Zhonghui Zijin City in the East District of the city,and the company also expanded from 300 m2 to 1200 m2.However,in order to save rent and related expenses,general manager Zhang and his partners chose the stores of losers in the same industry at a lower rent,Because it is not carried out in accordance with the scientific method,the company’s operation has fallen into a quagmire,which once again proves the importance of site selection to the company’s development.The unreliable basic work will eventually lead to the collapse of the superstructure.Finally,the third site selection.After fully analyzing the market environment,in order to revitalize the company,the company was relocated and reorganized,and the new company also began its life.The second part is the case description,including teaching purpose and purpose,enlightening thinking problems,analysis ideas,theoretical basis,background information,key points and suggested classroom teaching plan.Among them,The teaching purpose and purpose explain the scope of application of the case and the contents of MBA,EMBA,operation management and other courses;the theoretical basis and analysis part introduces the basic theory of location decision-making,as well as the transportation business circle theory and relevant methods of service facility location,analyzes the advantages of Z company’s first location and the unreasonable problem of the second location,and further explains the importance of location based on the data.