The investigation of location strategies utilised by existing businesses in Kliprivier business park in Gauteng.

Abstract

In South Africa and abroad, the term property is commonly perceived as an asset by many people. The location of a business can be said to be an important asset which has the potential of becoming a competitive advantage for any organisation, even though the location of a business may positively or negatively affect its viability. Therefore, identifying a suitable location for a business to thrive in can be useful in the overall strategy and profitability of any organisation. Traditionally, even though cost factors have been the cornerstone of the location theory, the fact remains that economic agglomeration or the clustering of businesses are influenced by the choice of location. It is of interest to also note that foreign direct investment decisions are influenced by location decisions and strategies. These are the reasons why multinational enterprises employ foreign direct investment strategy in considering location strategy as this ensures the sustainability of the investment. The aim of this study was to investigate location strategies utilised by existing businesses within the Kliprivier Business Park in Gauteng. The study employed a quantitative methodology to collect data. The data was collected using a selfadministered questionnaire. In achieving a 95 percent confidence level, a random sample of 63 participants were drawn from a population of 75 participants from Heineken SA and New Hope. The data was analysed using descriptive statistics with the use of the statistical package for social sciences (SPSS version 25.0). The key findings of this study identified eight (8) factors which affects the location decision-making processes of a business. The factors identified includes customers, suppliers, employees, transport, infrastructure, raw material, access to market and competition. A strong correlation between these factors and the location decision making was inferred from the findings of the research.