Location Flashcards
Give an example of how location for a business is becoming more complex
apple Hq in California production is in Asia
What are other location factors that a business needs to consider
market
Competition
Infrastructure
Labour
Government influences
Social reasons
Increased choice
International location
Costs
What are the location costs involved for a new business
planning permission
Purchase/rent/lease
Labour costs
Transport costs
Why will some new businesses accept that they are not in an optimum location
Maybe unable to afford location costs so choose elsewhere , maybe a long term objective to locate when capital increases
How is location influenced by market and competition
Market is where buyer meets seller, most commercial exchange is face to face so a physical location is needed
Retail location should be driven by customers but need to balance footfall and rental costs
If retail selected to shopping Centre what must considerations be
Image of the anchor tenant (1st and leading tennent whose name attracts other tenants and shoppers)
Does the anchor tenant image and product match their profile
Being near to competition is a bonus - creates consumer traffic and higher sales large businesses spend advertising budget on getting consumer traffic to their location
What is infastructure
Road rail shipping electronic communications and financial services
Why is there an imbalance in uk
In balance between south east and rest of the country improved infastructure is being planned to resolve HS2 0- very long term solution
When do economies of concentration or agglomeration occur
when lots of businesses in same or related industries are located closely
what are new businesses attracted to
Existing infastructure
What locations attract hi tech businesses
Near to units to do research, provide education and training
What are the labour implications for labour
Costs of labour international location is often lower evidence that this trend will reverse as wages rise
availability and skilled labour are also important considerations
How can government influence location
cost of labour can be influenced by availability of government grants given as an incentive to move
to certain regions
Governments can ensure planning permission granted to allow large developments to proceed
How can social reasons influence location
Managers want to live in environments that suit their families leisure facilities low crime rate and good schools
What is a foot loose business
move from location to location basing themselves where need is best met at a time
