Locating The Business Flashcards
Teleworking definition
Involves working in a location that is separate from a central workplace, using telecommunication technologies
Many start-ups operate from home because of:
Flexibility as telecommunications allow a person to stay in contact while travelling
Cost/lack of overheads
Time flexibility, enabling staff to work outside normal office hours
Least coast site definition
The business location that allows a firm to minimise it’s Costs and hence its selling price.
Main costs influencing the location of businesses are
Land costs/rent
Labour costs
Transport costs
Suppliers
Infrastructure definition
A network of utilities such as transport links, sewerage, telecommunications systems, health services and educational facilities
Questions that are particularly significant to a small business about the infrastructure
Parking spaces near by?
How much does it cost to park?
Is traffic flow good?
Is it on bus route or close to a station?
If the business is a shop, is it isolated or convent for visits to other shops?
Is it easy to receive deliveries
Footfall definition
The number of potential customers walking past the shop
What makes the market a crucial factor in determining the location of many uk firms
As the uk’s economy is predominantly based on tertiary production (the provision of services) making the market a crucial factor
Qualitative factors of locating a business are
Where the entrepreneur may live The prestige of an area Local facilities of an area Local facilities in an area Quality of life in an area
Government intervention definition
Where the government gives grants to firms in assisted areas; parts of England that have relatively low levels of economic activity and high persistent unemployment
Key factors influencing the location of small businesses are
Demographic factors-if local population matches the target market
Economic wealth of local area & if it can support the number of businesses located in the vicinity
Pedestrian traffic flow (football) during opening times
Parking factors-cost and time
Competitors locations
Location history-does the individual site have a good track record of successful business activity
Council policies
What factors influence location
Technology Costs of factors of production Infrastructure The market Qualitative factors Government intervention
