BUSINESS LOCATION Flashcards
THE IMPORTANCE OF BUSINESS LOCATION
- It is important for business owners to choose suitable locations for their firm or business in order for them to have a positive feedback and make profit.
- Business owners should consider seeking locations that will maximize revenues and minimize cost.
HIGH revenues - low cost = HIGH PROFIT
DISCUSS THE PUSH AND PULL FACTORS THAT DRAWS FIRMS TOWARDS CERTAIN LOCATION AND AWAY FROM OTHER LOCATION.
PUSH FACTORS: includes rising competition in the area, rising cost ,poor communications system and the falling of demands.
PULL FACTORS: includes government incentives ,low labour cost, goods communication systems and developing markets.
Name three factors that have had a major influence on the location of
businesses in South Africa.
The closeness to raw materials, the diminishing significance of manufacturing
industry, the development of the Internet
Identify the eight push and pull factors that would influence your decision if
you were to establish a business
Closeness to market, Communication links.
Closeness to raw materials, Availability of skilled employees.
Opportunity for waste disposal, Availability of power supplies.
Availability of land, Government incentives.
