Question

A business owner wants to open a new office. Her clients include both businesses and independent consumers.

A. In 2-3 sentences, explain how range, market area, and threshold are relevant to her decision.
B. In 1-2 sentences, explain the theories or models she should use to guide her decision, considering that she provides both business and consumer services.
C. If she is opening an accounting office, what other factors might be relevant? Your response should be
2-3 sentences in length

Answer 1

A. Range, market area, and threshold are relevant to the business owner's decision because they help determine the potential customer base for the new office. Range refers to the maximum distance customers are willing to travel to access the business, market area refers to the geographic area where the business can attract customers, and threshold refers to the minimum number of customers needed to sustain the business.

B. The business owner should use the Central Place Theory and the Market Penetration Strategy to guide her decision. Central Place Theory helps identify the optimal location of the new office based on the distribution of existing businesses and consumers in the area, while Market Penetration Strategy helps determine the best way to capture market share from existing competitors in the area.

C. If the business owner is opening an accounting office, other relevant factors might include the demand for accounting services in the local market, the level of competition from other accounting firms, the regulatory environment for accounting businesses in the area, and the availability of qualified accounting professionals to hire for the new office.

Step-by-step explanation: