Business location Flashcards
What are the factors influencing start up location
Costs, infrastructure, the market, technology, qualitative factors
What does cost of a location depend on
Town, city or village, urban or rural, central or outskirts, prestigious or deprived area
What is infrastructure
Transport and communication links as well as local services
What does the significance of infrastructure depend on
Type (ecommerce does not need to be close to customers) and scale (large businesses need to distribute globally)
What is a market
A place where buyers and sellers come together to exchange goods or services
Where do service sector businesses locate
Where there is a large footfall like train stations and town centres
Where do small suppliers locate
As close to the buyer as possible
What is a bulk gaining product
A product that gains size through the production process, these producers will be close to buyers to reduce distribution costs
Why do similar businesses locate together
Because it attracts the same target market and talent
What is the impact of technology on location
Businesses can sell online, staff can work from home and communication is made faster
What are qualitative factors
The personal desires and needs of the owner
What factors are involved in the qualitative decision making
Attractiveness, crime levels, school standards, managers will often sacrifice better options to keep the same team
