Chapter 69, Location and Logistics

Question 1

Factors affecting where to locate a business

Answer 1

• Government incentives
• Planning regulations
• Globalisation
• Type of Market
• Type of Business
• Cost of Labour
• Cost of a site
• Infrastructure
• Competition
• Consumers

Question 2

Type of Market and significance of costs

Answer 2

the greater the degree of competition within a market the more likely locational decisions will be cost-orientated

Question 3

Cost of labour

Answer 3

labour cost vary in different counties and places

Question 4

Infrastructure

Answer 4

• accessibility

- transport links

Question 5

Government incentives

Answer 5

government offering a financial boost for companies to locate in areas with higher unemployment

Question 6

Logistics

Answer 6

concerned with the supply chain management including

supplies production warehousing and transportation, customer requirements

Question 7

Supply chain management

Answer 7

the strategic coordination of business functions within a firm and with other businesses in its supply chain. to coordinate supply and demand and lower costs

Question 8

Out Sourcing

Answer 8

hen a business contracts a specialist company with the expertise to carry out tasks

• can be cheaper
• higher quality

Question 9

Subcontracting

Answer 9

when the main contractor does not possess the skills to complete the whole tasks if complicated so other contractors will be brought in to work within the guidelines of the project

Question 10

Offshoring

Answer 10

relocation of a business operational process such as manufactering its products abroad

Question 11

Reshoring

Answer 11

returning of production operations back to the original country

Question 12

Distribution managment

Answer 12

the process of managing the movement of goods to the point of sale. Includes activities such as stock control, warehousing and transportation