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Determining a Good Business Location in North America

When setting up a new company, various factors need to be put into consideration. The key factor is determining the best location for the business. Since the company aims at setting up in North America, various states have to be analyzed to determine the best for the business venture. The states that I have in mind include Michigan, Texas and Florida.  As the CEO, I will analyze different features of these locations and come up with a fervent decision on where to launch the firm.

Education resource is the second thing that must be put into consideration as the firm will require skilled labor. Research shows that in Texas students are encouraged to complete high school and attain superior grades as it is in most of the American states (De & De, 2010). Therefore, students lack the opportunity to acquire or master a body of challenging skills and knowledge. The tendency of encouraging students to be educationally adequate and not excellent has affected Texas as a whole. This has made the state’s board of education to intervene and try to encourage students to be self-reliant by being creative and innovative after school. This, in turn, has helped the students to be productive and portray their academic professionalism. According to statistics in Texas, there are approximately 120 universities.

Michigan, on the other hand, has 100 colleges and universities while Florida only has 51 (De & De, 2010). This statistics depicts the low levels of professionals in the state. Statistics estimate the likely growth of labor force in these states. Texas is estimated to have the greatest growth according to the study done by Steven in 2003. In Texas, the number of participants in all labor force training programs would increase from 273,411 to 739,959 by the year 2040, an increment of 170.6%. According to statistics done in 2011, Michigan has 15.6 million people as its work force. This makes a 9.5% increment by the year 2030. According to a report by “Times” in 2012, Florida currently has an estimated 74,354 people in its work force.

The next issue to put into consideration is the availability of skilled labor. According to estimates, it is easier to get skilled labor in Texas than in the other two states. Statistics show that the percentage of graduates has increased by 21.7% from 1990 to 2000. In Michigan, currently, the skilled work force ranges between 55,000 and 57,000 people exclusively of immigrated skilled work force (De & De, 2010).

Proximity to other locations and the infrastructure are other factors that need to be considered. North America as a whole has well elaborated road networks and air transport. Most of these roads do not have traffic circles, and, as a result, there are no traffic jams. This feature applies to all the three states.

When comparing the three states in regards to their connection to a global network, Michigan takes the first place with 91% of its population connected to the Internet (De & De, 2010). Florida comes second with 84.7% of its population being Internet users. Statistics show that one in every 14 persons is connected to a slow Internet in Florida. According to a research by Martin and Rob in 2001, the number of people capable of connecting to the Internet in Texas in 24 hours is 14,000. This shows that it is remarkably low in Texas compared to the other states and it cannot be a decent place for the company to be launched.

Recreational facilities in the three states must be put into consideration as many clients will be attracted to them thus increasing the demand. In Texas, there are 19 five star hotels, it is the home of horse riding, the origin of ranching, and it has three rivers. Michigan has the largest number of lakes and inland waters compared to the other states; it also has over 20 five star hotels. Florida, on the other hand, has the best beaches in the world, 39 rivers, and it is globally renowned for its wine.

Availability of resources and raw materials is also a key factor to consider. Among the three states, Michigan is the most endowed state with rich coal, oil and energy reserves as it is closer to Canada (Smith, 1925). Therefore, this is the most appropriate location since proximity to raw materials saves or reduces the transport cost of an industry. In addition, Michigan has iron ores, copper deposits and diamonds which are all useful for the company.

Geographical risks will be looked at in two dimensions: earthquakes and political risks. Texas has had six earthquakes so far, highest magnitude being 8.2. Political risks are not frequent in the USA. This is attributed to the high sense of political maturity in the country. An estimate of 4,000 earthquakes occur in Michigan every year, but only 50 of those are ever felt (geological survey Michigan). There is a 0.27% probability of a mega earthquake in the radius of 50 km of Florida in the next 50 years. The largest that has ever occurred was 3.3 in magnitude.

Communication systems in North America are relatively sound apart from Florida, slightly affected by oceanic waves.

From the analysis conducted, it is clear that Michigan is the most attractive place to start the firm. This is because of the readily available skilled labor that is provided by the heavy presence of graduates. In addition, Michigan has large energy reserves that would be beneficial to the company. The presence of iron ore, nickel, diamonds, copper and uranium is also an attractive aspect as the close proximity to raw material would save the company transportation costs. There is also a rich presence of tar sands, which is a rich source of oil, and coal reserves in Michigan. Oil and coal is used to run machinery in industries as a source of fuel; therefore, it is advantageous to set up the company in Michigan. In addition, Michigan has tried to maintain a legal immigration process, which has led to an increase in labor force. Therefore as a CEO, I can foresee successful marketing network because of Michigan’s Internet access. 

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