Business Location

Question 1

IMPORTANCE of BUSINESS LOCATION

Answer 1

📌Location of the most important factors for success
📌A well-placed location attracts CUSTOMERS and the right EMPLOYEES
📌The business location must be easily accessible for SUPPLIERS so that goods are delivered on time

Question 2

FACTORS THAT INFLUENCE THE LOCATION OF A BUSINESS

LABOR REGULATIONS

Answer 2

📌 Refers to all the laws and restrictions on how to employ, dismiss and treat workers
📌 Some regions have lower minimum wages than others
📌 Some regions have laws about the number of hours that workers are allowed to work

Question 3

ENVIRONMENTAL FACTORS

Answer 3

📌 Refers to all the restrictions and laws placed on certain regions in terms of what is allowed in a given environment
📌 Some regions have strict pollution and dumping laws
📌 Some regions have certain building restrictions
📌 Some regions have adequate natural resources, others not

Question 4

TRANSPORTATION

Answer 4

📌 Transport is essentially for the supplier to obtain the raw materials; for workers to get and from work; and for the distribution of the final product
📌 Transport costs must be reasonable
📌 The available roads, rail and harbors must be good enough condition
📌 Workers and employees must be able to get to work easily

Question 5

INFRASTRUCTURE

Answer 5

📌 Refers to the network, roads, water, electricity and sewage services available
📌 There must be a sufficient supply of water that is it suitable to be used
📌 There must be a sufficient electricity supply that cost effective
📌 The access, cost and speed of the telecommunication networks have to be taken into consideration.

Question 6

POTENTIAL MARKET

Answer 6

📌 Refers to those customers to whom you are trying to sell your products or services
📌 It is an advantage to be as close as possible to your target market and potential market
📌 The location of your customers and potential customers will influence the growth of your market
📌 The location of the potential market will affect the marketing strategy and costs

Question 7

RAW MATERIALS

Answer 7

📌 The closeness, of raw materials for business will have an impact on the price, transportation and availability of the product
📌 The more raw materials available, the lower the costs
📌 The closer the raw materials to the business, the lower the transport costs

Question 8

LABOR MARKET

Answer 8

📌 Includes all those workers and employees who work for the business
📌 The location should have the best access to skilled labor needed
📌 The labour rates should be affordable and acceptable for the location

Question 9

CLIMATE

Answer 9

📌 Climate change and patterns of rainfall, drought, snow and wind can affect certain business
📌 The type of climate required for a particular business must be considered
📌 How harsh hot or cold conditions will affect the business must be considered

Question 10

GOVERNMENT AND LOCAL REPUBLICANS

Answer 10

📌 Government uses politcies and laws to regulate the location of business