Location

Question 1

What is location for new and existing businesses largely determined by?

Answer 1

Access to customers,

Access to factors of production and minimisation costs.

Question 2

What are the key location factors?

Answer 2

Costs, the market and competition, infrastructure, labour, government influences, social reasons and increased choice in international location.

Question 3

The setting up of a new business will include a number of location costs which are:

Answer 3

Planning permission, purchasing or rental/leasing, refurbishment, business rates, labour costs and transport costs.

Question 4

Why may a business not be able to choose the ideal location for their business?

Answer 4

Because they can not afford location costs.

Question 5

What will a business consider when choosing how successful they will be because of their location?

Answer 5

Products, services and the market they will operate in.

Question 6

What is the market?

Answer 6

Where buyers and sellers meet.

Question 7

Why is physical location required?

Answer 7

Because most commercial B2C exchanges still take place face to face.

Question 8

What should retail location be driven by?

Answer 8

Access to customers, but there will be a balance between customer footfall and rental/lease costs.

Question 9

What will costs of location vary on?

Answer 9

Likely sales and customer potential but within each price brand there will be good and bad locations.

Question 10

If a new retail store is looking to locate in a shopping centre what must it look carefully at?

Answer 10

The image of the anchor tenant.

Question 11

What is a anchor tenant?

Answer 11

The first and the leading tenant in a shopping centre whos prestige and name recognition attracts other tenants and shoppers.

Question 12

What does the anchor tenant do?

Answer 12

Sets the tone and and image of the shopping centre.

Question 13

Why do the business owners need to examine the demographiocs of customers?

Answer 13

To dertermine wether their product would match the customer profile.

Question 14

How can being in lose proximity to competitors benefit a business?

Answer 14

The business can benefit from their competitors marketing efforts. They can almost use their competitors efforts in bringing customers to their store because they are so close and therfore likely to go into their store as well. Also if a lot of similar businesses are in the same area it attracts a lot of customers.

Question 15

Why do regional markets also apply to B2B relationships?

Answer 15

Manufacturers of components in many industries need to be located close to the users of their proucts. This has become increasingly true with the increased use of just in time systems where beoing on the doorstep is now the expected norm.

Question 16

What are examples of infrastructure?

Answer 16

Roads, rail and shipping. Electronic communication systems, training agencies and financial services.

Question 17

When do economises of concentration or aggiomration occur?

Answer 17

When a number of businesses in the same or related industries locate close together. They can gain adbantage from this.

Question 18

What do we mean when we say ‘labour’?

Answer 18

Cost of labpur, avaialbaility of labour, and skills of labour.

Question 19

Why is the cost of labour a dertemining factor when deciding location?

Answer 19

Because lost cos labour means for cheaper manufacutring costs. E.g. China.

Question 20

What is the cost of labour effected by when regarding government?

Answer 20

The avaulability of government grants, giving incentives to moe to particular regioms of a country and by government taxation policies.

Question 21

What is anothjer important factor whend dertmining location?

Answer 21

The availability of low cost and suitable land resources.

Question 22

Why do national governments and regiomal development agencies often work hard to ensure planning permission is available?

Answer 22

To allow large developments to proceed and they also offer incentive such as tax nreaks and help with recruitment and training of workes.

Question 23

What are the social reasons?

Answer 23

Managers want to live in an environment that is suitable to them and also benefficial. They can also be committed to their existing work force even when it makes sense to relocate a business.

Question 24

Whta are foot lose businesses?

Answer 24

Those that move from location to location, basing themselves wherever best suits their needs at a particular point in time, changing patterns in trade, improved communication and freer flows of capital.

Question 25

What do the largest businesses have?

Answer 25

The alterntive of locating their production facilities virtually anywhere in thr world as long as there is a stable political backgroud and available workforce even though they are still influenced by the same factors that dictate national location of business.