business location

Question 1

Location

Answer 1

Refers to the place where a business is sited.

Question 2

WHY?

Answer 2

To ensure the business is in an area which offers the facilities required to succeed

Question 3

HOW?

Answer 3

Businesses consider factors which influence this choice such as cost and proximity to labour, raw materials and the market

Question 4

Factors influencing business location

Answer 4

costs
proximity to labour
proximity to the market
proximity to raw materials

Question 5

Costs

Answer 5

Location can be affected by the cost of production in different places. The cost of production is affected by a number of factors such as:

Question 6

COST OF THE SITE AND LABOUR:

Answer 6

The price of land or premises (and labour) such as offices and factories can vary significantly based on the location.

Question 7

TRANSPORT INFRASTRUCTURE:

Answer 7

Infrastructure includes the roads, railways, airports and ports which exist in the area and also includes ICT such as broadband. These are important for the efficient running of the business.

Question 8

Government

Answer 8

The Government sometimes influence where businesses locate through offering many different factors, particularly if they locate in ‘Enterprise zones’, of which the UK has 48 (4 of which are in south wales).This is to increase income and employment in specific areas.

Question 9

Proximity to the market

Answer 9

Being near to its potential customers is crucial for many businesses.

Question 10

Proximity to raw materials

Answer 10

Easy access to raw materials is essential for some businesses as it reduces the cost of transporting them, which can be very high – especially if they are bulky.

Increasingly, waste products of one business are becoming raw materials of another, as businesses continuously try to create more sustainable production.

There is also the environmental side to this as shorter transport routes minimise carbon emissions and makes the business become more environmentally friendly

Question 11

Proximity to labour

Answer 11

In order to run efficiently businesses need to a supply of the
appropriate workforce, whether that be skilled or unskilled workers.

The availability of labour will have a significant influence on the location of a business, for example;
An ICT business may locate itself near universities which have graduates in these qualifications
A business which needs unskilled workers may locate itself in a town with high unemployment