Scope of work
A company's operating area is the part of the market in which the company operates. This can mean a geographical area as well as the trade or product segment.
The geographic operating area is formed by a region around a branch. A limited area can usually be served from an establishment, which is determined by the company's distance and capacity (consider factors such as personnel, travel time and call-out costs). The area served from the business location can also be determined by demand.
Opportunities for growth by opening new branches are often identified through a white-spot plan.
An area of operation can be international or national, or limited to one or more provinces or cities. By opening multiple branches, a company can expand the area it can serve. The rise of e-commerce has increased the potential operating area of many companies, as distance is less of a factor when doing business over the Internet.
Work area is also sometimes used to designate a market segment based on area of expertise or target market. A geographical region is often linked to this as well. Examples: office cleaning in the Amsterdam region, selling sewing supplies to individuals over the Internet or a wholesale distributor of painting supplies to companies in the eastern part of the Netherlands.
