Choosing Office location | Urban | Rural | Merits and Demerits

Choice for Selecting Office location

Each business unit should select the proper location for the office building according to its requirements. It is better to decide in the choice of office location whether the office building should be located in an urban area or a sub urban or rural area.

Choice of Office location - Rural and Urban, Merit and Demerits

Choice of Office location – Rural and Urban, Merit and Demerits

Each area has its own merits and demerits. But, the office manager has to select the place with due care. The relative merits and demerits of the two types of locations are briefly discussed below.

Urban Area for Business location

The general trend in the selection of location for office building is urban area. The merits and demerits of urban area are presented below.

Merits of Urban Area for location of office

1. Nearness to related business / office.

2. Nearness to service units like banks and post offices.

3. Transport facility for the staff and the customers.

4. Availability of communication facilities.

5. Prestige value to the business unit.

6. Facilities for the purchase of raw materials and selling of finished goods.

7. Municipal or corporation facilities.

8. Abundance of recreational facilities.

9. Easy availability of skilled employees.

10. Immediate action can be taken to enlarge customer’s satisfaction.

11. The important government offices like Income Tax, Sales Tax etc. are situated in urban area.

Demerits of Urban Area for location of office

1. High rent, rates and taxes.

2. High cost of land.

3. Traffic congestion and over crowding.

4. Inadequate space for office building.

5. Difficult in future for expansion.

6. More noise, dust and fumes.

7. Less scope for modernization.

8. High cost of living for employees.

Rural Area for Business location

The recent trend in the selection of location for office building is rural area. The merits and demerits of rural area are given below.

Merits of Rural Area (Sub Urban Area)

1. Low wages of the labour.

2. Cheap value of land.

3. Accessibility to real customers.

4. Less congestion and less crowding of people.

5. Pure air and water.

6. Quiet and hygienic environment.

7. Low rent of building.

8. Less construction cost.

9. Ample scope for future expansion and modernization.

10. Lower cost of living.

11. Insanitary conditions will not prevail.

Demerits of Rural Area (Sub Urban Area)

1. There is no proper transport and communication.

2. Office location may be for away from related trades / offices.

3. There is a poor or lack of service facilities like banks and post offices.

4. Regular electricity is not available.

5. There is a difficulty to accessing the customers.

6. There is a poor or lack of recreational facilities.

7. There is no any facility for repairs and maintenance of office machines and equipments.

8. The business has no scope for expansion due to low sales.

9. Skilled labourers are not available.

10. There is a possibility of delay in getting certain essential materials.

11. Specialized agency like Engineering and Insurance are not available.

12. Regular or immediate contact is impossible with important government offices which are situated only in cities and urban areas.

13. Odd sales are not ready to work in the rural area.

14. Office staff is not ready to work in the rural area.

Deciding factor for location of office building

In choosing a location between urban and rural area, a balance should be struck between their relative merits and demerits. The final choice is based on the cost factor. The attitude and preference of top management are important rather than cost factor. Ultimately, the selection of location for office for office building should ensure the highest utilization of efficiency of staff with minimum cost.

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