1.5: Business Location Flashcards
What is Business Location?
Where the business carries out its activities
What are the factors influencing location?
Type of Business - Sole T based in house, small business may have studio, large business based in multiple locations. Goods sold also affects location e.g. shops convenient to customers, some businesses close to skilled workers or raw materials
Proximity to Market - convenient for customers e.g. cinemas, restaurants. Internet impacting as some now sell online and deliver direct e.g. amazon can locate anywhere as long as has good transport links
Availability of Raw Materials - close if bulky / expensive to transport
Suitable supply of labour - right skills, wages low for low skilled work (Poland, India etc) e.g. cloths
Competition - similar products in same market - locate near competition as business knows this is where customers go
Costs - need to keep costs low so locate in cheap area OR if a quality business then might need to location in a high profile area e.g. high end food retailers
