Management integrated systems are programs or systems that provide very reliable and useful information that is vital in the management of an organization. The systems integrate the concepts of all the departments with up to date information on the statistics of the activities carried out in the company. The system makes the tasks of decision making and planning easier. Currently the systems are also used in the determination of good sites and forecast of future expectation upon programming with the factors under consideration (Little 7).
Predetermination of a business location will entail the selection of a particular area as the most favorable in consideration to some factors that affect the business.
Several risks or disadvantages occur in the event that the location is allocated with bias to the advantage it has on several factors or even only one factor. Whereas the factors are to be considered in the location, all the factors are to be tabled and considered without bias in their effect in conceptual value as opposed to the theoretical validity given by predetermination (Little 2).
In addition to that, the issue of centralization and decentralization plays an important role in the location of a business.
Centralization putting all the functions of the business at the same location, that is, the production, marketing, distribution and sales are all under one roof. On the other hand, decentralization will separate braches that have the full capacity to serve their market with all the operation from there. The application of the two concepts will depend on the level of the business; this is because the decentralization of a business will be suitable for an organization that has been in existence for a while.
Apart from that, the organization must do a substitutability research to determine whether it will save by eliminating marketing and distribution costs with production costs (Little 3).
Before finally putting up the business, it is in order to determine whether the location is the optimum location. Optimum location will be the location that gives more advantages than the rest in the factors to be considered and the profitability in the short run and long run.
This however depends on the capacity of the company, for some cases will have bad short run profitability compared to the future profit in the same location. Ideally, the companies’ goals are the considerations that affect the decision in the third stage (Little 5). CONCLUSION During the determination of the best location for a business, management integrated systems can be of good help especially in the calculation of the expected units of production and other calculations.
However, in these calculations, assumptions are made on the various expectations of price and demand in the future to determine the net profits in future for comparison (Little 6). WORK CITED Little, Wallace. “Location selection through integrated system management”. Land Economics. February 1969. July 28, 2010 Pp 2-7
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