Businеss Саsе Study Аnаlysis – Quеstiоn 7

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Businеss Саsе Study Аnаlysis – Quеstiоn 7

I partly agree with the decision
made by Frank and Robert to open a new
restaurant in Darien,
Connecticut. This is because Frank and Robert made the decision by looking mainly at customer-related factors such as the population size of Darien, Connecticut, the average income of the people in the area, travel times of consumers, and size of the customer base as a percentage of the total population. Frank and Robert selected the new location because of the high-income population of the area, the high population density, the long commuting times in the area, and the fact that the majority of people in Darien, Connecticut are family households (University of Canberra 2016, p. 989). This means that the selected location has a high customer base with a good potential to buy what the business will be offering.

However, the potential of customers in an area is not the only factor to consider when locating a business. Other factors that need to be considered include competition, growth prospects, overall operating costs, availability of space, and nearness to resources such as raw materials and labour (Moore et al. 2008, p. 240; Reynolds, Williams & Savage 2000, p. 191). Therefore, I would recommend that Frank and Robert also evaluate the market in Darien, Connecticut in regard to potential competitors, the cost of operating the new business, whether there is adequate space for the business and its clients, and whether getting raw materials and labour is manageable.


Moore, CW, Petty, JW, Palich, LE & Longenecker, JG 2008, Managing small business: an entrepreneurial emphasis, 14th edn, South-Western Cengage Learning, Mason, OH.

Reynolds, W, Williams,
A & Savage, W 2000, Your own business: a practical guide to success, 3rd edn, Nelson Australia Pty Limited, Southbank, Victoria.

University of Canberra 2016, Small business management in the 21st century, University of Canberra, Canberra.