Business location

Question 1

what are the key location factors of a business?

Answer 1

-costs
-the market and competition
-infrastructure
-labour
-government influences
-social reasons
-increased choice in international location

Question 2

what is meant by business location?

Answer 2

Location for new and existing businesses which is largely determined by:
* access to customers
* access to factors of production
* minimisation of costs.

Question 3

why is costs important?

Answer 3

-it is important for:
* planning permission
* labour costs
* transport costs

Question 4

why is the market and competition important to consider?

Answer 4

-Retail location should be driven by access to customers but there will be a balance between customer footfall and rental/lease costs.
-An anchor tenant is usually the first and the leading tenant in a shopping centre whose prestige and name recognition attracts other tenants.
-Being in close proximity to competitors, a business can benefit from their marketing efforts.

Question 5

why is social reasons important for business location?

Answer 5

Managers want to live in an environment that suits them and their families.

Question 6

why is labour considered with business location?

Answer 6

-It can be a deciding factor in determining location. By labour, its meant cost of labour, availability of labour, and the skills of labour.
-Businesses can be attracted to certain areas by the skilled labour that may be available

Question 7

why is government influence important?

Answer 7

-Cost of labour can be affected by the availability of government grants and government taxation policies
-The availability of low cost and suitable land resources can also be an important factor when determining location

Question 8

why is infrastructure important?

Answer 8

The type and quality of infrastructure also effects access to markets. Infrastructure used to mean roads, rail and shipping. However, a more modern definition includes electronic communication systems, training agencies and financial services.

Question 9

what is increased choice in international location?

Answer 9

Footloose businesses are those that move from location to location, basing themselves wherever best suits their needs at a particular point in time:
* changing patterns of trade
* improved communications
* freer flows of capital

Question 10

what are the main influences on international location beyond politics and labour force?

Answer 10

-Maximising economies of scale
-Political factors
-Comparative international wage levels
-Freedom from restrictions