CHAPTER 1

INTRODUCTION

1.1 Background of the Study

As the world becomes more and more innovative and diverse, As a result is also the
market as it progressively becomes competitive. The capability to thoroughly recognize the
demands of the market concludes the outcome of a business firm. It is significant for a
businessman to consider the different factors when it comes to the world of business. The
owner’s ambitious and personal goals will then help influence the understanding and the use of
strategic management and planning (Postma and Zwart , 2001) . Thus, business strategy plays a
pivotal role when conducting a business operation for the reason that it creates impact in the
result of the firm performance. (Emeka, 2015). It guides to determine the direction along to
which a firm aims to move and how the firm shall obtain success.(Yanney et al. 2014). One
strategy is the location of the business firm.

The descision of selecting a business location should abide by and be part of its overall
business strategy. A location strategy is a plan for acquiring the ideal location in order to
maximize the opportunity while minimizing costs and risks (Karl Heil). Location is one of the
biggest factors for the development of a business. It is where the economic power of the firm is
being evaluated. Accordingly choosing a good location can crucially uplift the organization’s
long term performance. Although once the location decisions are done, undoing it will be hard
and expensive. There are aspects that needs to be considered in order to elect the best possible
demography for a business. Such as the availability of the raw materials needed , The allocated
budget for the area ,The accessibility of the customers or trading , The security of the
environment and competition. The study will run by investigating the advantages and
disadvantages of business location and how can it affect business development and business
income by studying the specific aspects mentioned. Therefore , The researchers would like to
further identify the effects of business location on the local businesses in Zamboanga City in
accordance with the perceptions of some successful businessmen within the city.

In this study, we will be able to see how business location as a business strategy can help a
business in making their success as it shall observe innovative changes and progress in their
performance and does being in the right location the key ingredient in a business’s success?
1.2 Statement of the Problem

This study aims to determine the effects of business location of the local businesses as
perceived by local businessmen in Zamboanga City. Specifically, it seeks to answer the
following questions:

1.) What does a business owner consider when choosing their location?
2.) Why does the aspects considered important in the business development?
3.) How does business location affect the business performance?

1.3 Significance of the Study

This study aims to help influence the knowledge of aspiring businessmen to make a
direction towards their descision making in terms of wisely choosing their ideal location
practically. Choosing a good place to start a business may take quite some time to think over as
the choice of business location significantly have an effect on the operation’s profit and cost.

The purpose of this study is to determine the possible factors in accord to the location that
markedly affects the progress of the successful businesses in Zamboanga City.

1.4 Scope and Delimitation

This study limited only on the perceptions of business owner’s towards the effects of
business location as a business strategy. Accordingly, a total of 11,200 businesses were
processed and assessed last January 2019 in Zamboanga City. The researcher’s will
randomly choose 5 successful business owners in Zamboanga city as respondents. This
research will be conducted in Zamboanga Chong Hua High School.
1.5 Conceptual Framework

Independent Variable: Dependent Variable:

Business Business
Location Performance

Fig. 1 the independent and the dependent variable

1.6 Definition of Terms

Business Location - The place where a firm decides to site its operations.

Business Strategy – The management’s game plan for strengthening the performance of the
enterprise. Its states how business should be conducted to achieve the desired goals.

Business Development- The activity pursuing strategic opportunities for a particular

business of organization.

Business performance- A set of performance management and analytic process es that

enables the management of an organization’s performance to achieve one or more pre-
selected goals.