Business location Flashcards
What are factors affecting business location ?
- Type of business
- Proximity to market
- Competitors
- Availability & cost of labour
- Transport links
- Technology
What are 2 advantages of locating close to raw materials ?
- Reducing transport costs
- React quicker to changes in demand
What is a disadvantage of locating close to raw materials ?
May be more expensive & time consuming
What are 2 advantages of locating close to the market ?
- Easier to attract customers = more footfall
- Able to easily react to changing demand & customer needs
What is a disadvantage of locating close to the market ?
Obtaining goods from suppliers may be more time consuming & expensive
What is an advantage of taking account of competitors location ?
Market may not become over saturated = business competing for same customers = higher profits
What is a disadvantage of taking account of competitors location ?
New businesses may have to locate in less lucrative areas that may not attract customers
What is an advantage of locating near a skilled workforce ?
Greater availability of labour = lower costs
What is a disadvantage of locating near a skilled workforce ?
May be based away from customers = increases costs
What is an advantage of having good transport links ?
Costs of gaining raw materials & transporting goods to the market is lower
What are 2 disadvantages of having good transport links ?
- Competition for location is higher = building costs are higher
- Transport links may be distant from the market
What are 2 advantages of having access to technology ?
- Ability to access wider markets
- Offers innovative ways of engaging with customers
What is a disadvantage of having access to technology ?
Competitors able to offer similar or better services = can see what rival business offers
What 2 factors affect choosing different locations ?
- Supply factors
- Demand factors
What are supply factors ?
Concerned with costs of labour, land & energy
What are demand factors ?
Concerned with ability of labour skills, customer convenience, image & potential to expand
