Unit 1 AOS 3

Question 1

What is it meant by “location”

Answer 1

Where the customer can find you and purchase from you
-> matters b/c it affects operation costs, potentially affects ability 2 generate sales and deliver customer service, poor choice = costly to undo

Question 2

Benefits of selecting the right location

Answer 2

• Competitive unit cost = combination of productive and efficient labour supply, acceptable locations overheads and cost effective access to inputs.
• Optimal revenue opportunities -> customer x inconvenienced.
• An acceptable rate of return on investments.
• Access to labour force.

Question 3

Types of locations (don’t need to list all, minimum of 3)

Answer 3

Home, markets, retailers, online/apps, trade warehouses, bricks and mortar stores.