Business Location

Question 1

Raw materials (location)

Answer 1

(Primary sector) wants to be near raw materials so they can be, extracted from the ground, harvested, soil can be used ect.
(Secondary sector) being near to where raw materials are being produced means delivery costs to where they’re being manufactured are lower.

Question 2

Employment (location)

Answer 2

If (Skilled workers) are needed it would be useful to be near to universities for example.
If (cheap unskilled labour) is needed then areas with high unemployment would be good

Question 3

Competitors (location)

Answer 3

Being (near to) them means people looking for that type of good or service might choose your business instead.
Being (far from) them means there is more demand in that area for your good/service and/or nowhere else for customers to get it from.

Question 4

Infrastructure (location)

Answer 4

Good transport links makes it easier for customers and employees alike to reach your business.

Question 5

Proximity to target market

Answer 5

An (offline) business needs to be near ‘footfall’ (pedestrian traffic) while for an (online) business it doesn’t matter much.

Question 6

Finance (location)

Answer 6

(New businesses) might not be able to afford to set up anywhere they want due to their finance while an (established business) is less affected by location costs.

Question 7

A business decision must either…

Answer 7

Increase sales, improve image, lower costs