4.2b Nature of Business Activity Flashcards
Impacts on business activity caused by choice of location
Import and export businesses locate near seaports and airports
Businesses that want to export around the country choose to be in central areas so they can access main motorways and major roads
Agricultural businesses that require a certain type of TOPOGRAPHY will choose their location based on factors such as climate and soil type
Tourist - related businesses will choose to be located around popular cities or seaside towns
Specialist support services who provide raw materials locate themselves in areas where there is demand for their products and that they will be able to sell their products
Traditional industries (cotton mills) will locate near places where their products will be in demand and can sell late amounts
What is topography?
The physical characteristics of the landscape such as being flat or hilly
How to decide where to locate a business?
Business people decide where to base their business based on person preferences or INERTIA
What is inertia?
A tendency to keep things the same rather than change
Why inertia?
This was the businesses first septet (the entrepreneurs hometown), the entrepreneur benefits
The impact of the internet on location decisions
Enables online trade
No fixed premises = no rent
Benefits of the internet in busniess
Lower cost for running the businesses
Cost effective way of attracting customers
E-commerce and M-commerce
Lower operating costs
Ability to reach a wider audience
Ability to trade at all times
Ability to respond to changing customer buying habits quickly
The business is able to advertise for free using online media
Use of multi-channel
This means that they can still operate in their stores as well as operating as an e-commerce site
Benefits of multi-channel
This allows the business to maximise the amount of customers they can reach
