1.4c Business Location

Question 1

Benefits of e-commerce

Answer 1

• lower operating costs
• ability to reach wider audience
• ability to trade in 24 hours a day
• ability to respond to changing consumer needs

Question 2

How should a business research wether it’s appropriate to locate business close to its customers ?

Answer 2

• footfall

- demographic data

Question 3

Why would a business want to locate close to labour ?

Answer 3

• locate in high areas of unemployment, where they are happy with the national minimum wage
• lowers cost significantly

Question 4

What is a bulk-gaining product ?

Answer 4

end product is bigger ( more expensive to transport ) than the raw materials

Question 5

Why would a business chose to locate near market which has ‘ bulk-gaining product ‘?

Answer 5

Reduce transportation costs

Question 6

What is a bulk reducing product ?

Answer 6

End product is smaller than the raw materials

Question 7

Why would some business locate close to competitors ?

Answer 7

• people are more likely to go to areas that have a more wider option
• they may offer lower prices which means customer will be lost from other business and will be attracted to your business

Question 8

What does it mean a business location is based on inertia ?

Answer 8

• the business carries on a business where they first set up
• they don’t stay for a particular reason but it’s easier