Business Location Flashcards
What is a recent trend affecting business location?
Growth in e-commerce has meant that there has been a large growth in businesses operating from home and selling over sites e.g. eBay & Amazon.
What are the factors affecting location choice?
- Quality of workers in the area.
- Infrastructure.
- Owners’ preference.
- Whether they sell via a shop or Internet.
- Local laws e.g. planning permission.
- Distance to customers/suppliers.
- Size of land required e.g. farm/factory.
The following factors are linked:
- Number of expected customers .
- Expected revenue.
- Forecast break-even and profit of the locations.
- Land, labour, transportation costs.
- Expected costs (fixed and variable)
What will the question ask you to evaluate?
The most appropriate location type of the business in question.
Why might manufacturing businesses require a different location to a tertiary business (operate in shops)?
Factories need to be near good transport links and require much larger space whilst tertiary shops need to be located where customers can easily get to.
