location and suppliers Flashcards
what affects location
costs closeness to market labour materials rarely only one factor affects a business
the cost of the site
the price of land depends in the area of the uk
some cities are more prosperous so more expensive than others
north and south divide
transports
it is important to have easy access to transport so you can ship goods quickly
infrastructure includes roads railways and airports
ict infrastructure includes broadband and telecommunications
governments and costs
national or local government may want to influence where businesses locate to increase employment and properity.
the uk has enterprise zones in the uk where taxes and premises are low cost and higher capitals
being near the market
tourist businesses need to be near tourist to have a large possible group of buyers.
hairdressers and newsagents for example need to be near their customers
nissans suppliers are near to nissan so they can provide goods quickly and easy commuication
nearness to raw materials
some businesses would like to be near the raw materials as the cost of transporting them can be very high in bulk. It can also reduce the carbon footprint making the business more sustainable
closeness to labour
where a large number of a type of labourers there are then a business may locate there to guarantee workers.
roles of procurement
identify goods/ service to buy
choosing suppliers
ordering goods/ service
recieving goods and sservice
procurement
the management of buying in a business
some businesss have departements for this
if something goes wrong and there are no goods in store then it will be the shops fault not supplier will take blame
identify goods and service
any shop has to choose about what to offer for sale it depends on the time of year changes in technology changes in fashion and lifestyles
the time of year
clothes have seasons e.g. winter
local shops may sell ice cream in summer and jumpers in winter
changes in technology
some products change quickly
businesses should not buy too much of something because they may become outdated quickly. so they may put product on promotional pricing
fashion and styles
e.g. fashion
going vegan and gluten free
businesses must cater to their needs e.g vegan food
ordering
do you need a departement or should you do it yourself or hire people
should you buy in bulk for discounts
should you have a 12 month contract which is cheaper per month or a 6 months contract
storing and delivering
the amount ordered is influenced on the capacity of storage
if you buy in bulk you need a big lorry to carry your goods. you need good access for that