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Site selection is the process of choosing the optimal location for a business based on accessibility to and availability of customers as well as considerations such as space costs, size, and other physical characteristics, zoning regulations, investment tax credits, and the quality of the available workforce. The greater the perceived value of the goods offered, the greater the effort a consumer is willing to expend in order to reach the seller's place of business. For example, a grocery store in a rural area with limited competition does not have to worry about accessibility as much as a dry cleaner in an urban area with numerous competitors.

The very first thing that Mr. Elmer Eggen needs to do is to do an extensive market research to gather information on the fast food restaurant market in China. This research would seek to answer questions relating to the four P's of marketing Ð'- Price, Production, Promotion and Place. For the purpose of this case we will focus our attention on the final P Ð'-Place.

The Location of any business or rather selecting the towns and sites for a branch of a McDonald store involves more than just choosing a building; especially as it relates to the international marketing. It is important to recognize that a firm does not emerge into an international market but that it has to build brand awareness. One key to ensure element that helps to build brand awareness is the location of the building.

Within the retail industry the adage is "the three keys to success are Ð''location, location, location". Which is why McDonald must ensure that the location selected is optimal. In order to achieve this goal, there are several basis for selecting suitable towns and sites within a town for a branch of McDonald. Some of them are finance, structural requirement of the building, population of the town, culture, town infrastructure, transportation network, energy facilities, zoning laws,

The basis for selecting suitable towns and site within a town for a McDonald branch is varied and many. The most important is finance. The budgeted amount allotted for the actual location will determine which town/site is actually chosen. The market research that was done should help to narrow down the cost for property in China, whether the property is being bought, leased, or rented or if land is bought and a building erected. Having a clear idea of how much money is available to buy/lease/rent/build a building and an approximation of how the cost for each choice based on a particular town/city then a decision can be made.

Probably, one of the most important basis for site selection, other than finance is the type of physical structure that is required. The design of the physical structure is of great importance because it is influences the decision to buy land or an actual building.

Mr. Eggen will need to decide, based on the requirements of the physical structure needed, whether or not his company wants to wants to find a land and build on it, rent/buy/lease a building based on the financial resources available. Additionally, it aids the decision of buying a building and modifying it to the necessary specification.

Once a decision has been made regarding the physical structure then it becomes easier for a real estate agent to find possible appropriate location. Population is another basis that can be used for selection. All businesses operate to make a profit and if the business is not located in an area that is well populated then it will not become profitable.

The population of the general area and also the population of the surrounding area must be carefully considered; as well as the Trade Area Demographic. There must be a distinct link between the trade area demographic and the retail target market. This important if the location of the actual building is in a sparsely populated area with little or no other business in the vicinity and no ease in commute then it is highly unlikely to generate huge sales.

Consumers need to be able to commute easily to any business for the business to become extremely viable. Therefore, another important basis to take into consideration is the transportation networks of the town/city being considered for a business. Transportation network refers to whether or not the town has paved roads and its condition, railroad and airport. Simply, what is the mode of transportation used by the majority, and how accessible your business will be to commuters-consumers/suppliers? Suppliers must be able to deliver supplies in a timely manner and the transportation network on the road surface will determine this.

The town's infrastructure Ð'- its communication system (television, radio, print media, and telecommunication) is extremely important. Globalization and the advancement in technology have made it easier for companies such a McDonald to communicate with their Head Office and suppliers with the touch of a button. If the area does not have the necessary infrastructure available then it is not a good location.

The infrastructure of the general area should be complimented by the energy facilities (power plant, gas and electric utilities) of the town. For example, if the business requires a particular high power consumption or special wiring will that be available in the selected area.

The culture of the town is another critical basis for selecting a location. As suggest in the article McDonald is not the meal of choice - "taking a bite at the Kebab loving Balkans". As a result, they have to ensure that they are located in an area that will generate sales. This they can achieve by ensuring that they study the culture of the town and match that culture with the target market for their product. For example, if the target market involves persons who eat pork and the culture of the town is that "pigs" are sacred animals then selling pork would offend consumers and not generate sale.

Adequate parking space is another important consideration that forms the basis for site selection. Since McDonald is predominantly a drive through and walk-in facility it is critical that consumers have the adequate parking; because if the parking is not available then consumers may choose not to use a facility that offers parking.

The zoning law of the town is another key basis for site selection. Zoning law determine the use of the site, the size of the structure that can be erected, signs that can be displayed and the type of parking lot that can be built. The McDonald sign is one that has been displayed world wide in areas that are highly visible. Therefore to erect a structure in an area that prohibits the displaying

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