106 business location

Question 1

factors that need to be coincided when locating a new business

Answer 1

-costs -labour availability
-competition -social reasons
-government influences -globalisation
-infrastructure

Question 2

describe costs in relation to the needs of the business

Answer 2

location costs include - ~purchasing/leasing/rent, ~refurbishment, ~planning permission , ~transport costs
-new business will be be limited of a suitable location choice due to high costs -will need to consider what the most important factor is for them

Question 3

describe market and competition in relation to the needs of the business

Answer 3

-market- place where buyers and sellers meet, usually takes place face-face so stores are neeed
-cost of location varies according to likely sales and potential customers links to footfall
-footfall (the number of people passing close to the business-these are potential customers of that business)
-being close to competition can benefit a business- large business spend a a lot of money of adverting , increasing flow of customers the business can take advantage of , more ppl congregating in the same area-more customer interest-more individual sales

Question 4

describe infrastructure in relation to the needs of the business

Answer 4

-the type and quality of infrastructure affects access to markets , a number of businesses in the same or related industries may locate close- new business terms attracted to existing infrastructure clusters. eg. media city, salford quays

Question 5

describe labour in relation to the needs of the business

Answer 5

-some areas have more labour available because of unemployment

-some have higher levels of skills/education- important for some industries

-locating internationally helps a business find cheaper workers as cost of living may be lower , but workers may still be educated and have skills

Question 6

describe government influences in relation to the needs of the business

Answer 6

-cost of labour can be affected by availability of government grants , and taxation policies

-availability of low costs and suitable land resources important factor in determining location-national governments work hard to ensure planning permission is a available to allow large developments to proceed, also offer incentives eg.help with recruitment ,training of workers

Question 7

evaluate the choice of different locations for a new business

Answer 7

what is the most important to a new business:
-costs (new business need to save) -personal preference(entrepreneurs risk)
-footfall -level of risk
-access to resources -length of contact lease