Celvin FoodStuff operates a chain of mini conve- nience stores in downtown city settings, offering beverages, snack
Question:
Celvin FoodStuff operates a chain of mini conve- nience stores in downtown city settings, offering beverages, snack food, and some fresh food items to passing pedestrian traffic. A typical Celvin Foodstuff is half the size of the average convenience store, with no customer parking and almost no backroom area, as Celvin delivers stock directly to store shelves early each morning. The ideal FoodStuff store includes 100 square meters of space, with a busy city sidewalk passing immediately in front of its display windows. Because a FoodStuff store relies on impulse pur- chases from walk-in traffic, it is better located farther from similar stores that might reduce this traffic or invite price comparisons by shoppers. Locating on the corner of a city block is considered particularly beneficial, as this doubles the visibil- ity of the FoodStuff to passing customers. Celvin FoodStuff rents each of its 27 current locations and is now considering adding a 28th store. Celvin management has identified three promising locations, each owned by a different commercial real estate company. The Factor Data table provides data on each location, designated by the name of the real estate rental company.
Questions
1. Prepare this data for a factor rating analysis by converting the information provided into appropriate scores. Explain any assumptions you made during this process.
2. If each of these factors is equally important to Celvin FoodStuff, which location should it choose to rent?
3. If rent were twice as important a factor as any of the other three, would your previ- ous recommendation change? If so, to what location?
4. If you could ask Celvin two questions for clarification before you finished your analysis and committed to a location, what would those questions be?
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