-Esther Sancho-

Proposed exercise:

The company Pretty Shoes has 2 stores in Madrid and due to its success wants to expand its business in Barcelona. The company offers exclusive and fashion design shoes. There are three possible places in which the company wants to locate its store which are Portal de l’Àngel, Passeig de Gràcia or Diagonal Avenue. The company has chosen 7 relevant factors and given a weight between 1 and 5 to them. Managers have made an evaluation for each factor and place which is represented in the table below. Using the Weighted Factor Method, which is the best place to locate the new store?

Localization factors Weight Portal de l’Àngel Passeig de Gràcia Diagonal Avenue
Nearby potential customers 5 70 100 90
Nearby suppliers 3 30 40 60
Nearby clothes stores 4 90 90 70
People wealth 5 60 80 80
Good communications 4 70 70 90
People passing by 4 90 100 70
Rental price 3 70 30 60

Imagine that rental price becomes to a more important factor, so the weight of this factor changes to 5. Which will the best place to locate the new store now?