Business in the real world: 1.5-1.7

Question 1

What are the 5 factors that influence where a business in located?

Answer 1

-Proximity to the market
-Availability of the raw materials
-Labour
-Competition
-Costs

Question 2

What are customers important for?

Answer 2

-retail business
-Convenience stores

Question 3

What are customers less important for?

Answer 3

-Business requiring larger physical space
-online businesses

Question 4

What makes businesses locate near suppliers?

Answer 4

-products produced are large or costly to transport
-They need to be close to natural resources.

Question 5

What do businesses need to consider about labour in a location?

Answer 5

-Skills
-Availability
-cost

Question 6

The setting up of a new business will incur a number of location costs including…

Answer 6

-planning permission
-purchasing or rental
-refurbishment
-labour costs
-transport costs

Question 7

What are the 4 main reasons why businesses fail?

Answer 7

-flawed business plans
-Poor financial control
-lack of knowledge of market and competition
-Lack of clear unique selling point.

Question 8

What does an executive summary describe?

Answer 8

-business idea
-Overall aims and objectives
-Main opportunities to be exploited
-strategies to be used
-Finance needed and how finance will be obtained.

Question 9

What 2 things to businesses have to research about the market?

Answer 9

-competition
-Demand (size of market, value, growth)

Question 10

What are the 4 marketing strategy?

Answer 10

-Promotion
-Product
-Pricing
-Place