business location Flashcards
(16 cards)
Importance of Business Location
Selecting the appropriate location is crucial for a business’s success. It influences operational costs, accessibility to customers and suppliers, availability of labour, and overall competitiveness.
Proximity to Market
Being close to customers reduces delivery times and transportation costs.
Retail businesses benefit from high footfall areas, increasing sales opportunities. Service providers need to be accessible to their client base.
Availability of Raw Materials
Manufacturers may locate near raw material sources to minimise transportation costs. Proximity ensures timely access to essential inputs, maintaining production schedules.
Labour Supply
Access to a skilled workforce is vital for operational efficiency. Areas with higher unemployment may offer a larger pool of potential employees.
Wage rates vary by region, affecting overall labour costs.
Transport Links
Good road, rail, air, and sea connections facilitate the movement of goods and people. Efficient logistics can lead to cost savings and improved customer service.
Technology and Communications Infrastructure
Reliable internet and communication systems are essential, especially for online businesses. Advanced technology infrastructure supports efficient operations and customer interactions.
Government Policies and Incentives
Governments may offer grants, tax incentives, or subsidies to businesses setting up in certain areas. Regulations and planning permissions can influence location decisions.
Cost of Premises
Rental or purchase costs of property vary by location. Businesses must balance the benefits of a prime location against higher property costs.
Competition
Being close to competitors can be advantageous for attracting customers. Alternatively, some businesses may prefer locations with less direct competition.
Availability of Utilities
Access to essential services like electricity, water, and waste disposal is necessary. Reliable utility services support uninterrupted business operations.
Environmental Factors
Some businesses may require specific environmental conditions, such as climate or proximity to natural resources. Environmental regulations may also impact location choices.
Location Considerations for Manufacturing Businesses
Manufacturing businesses prioritise proximity to raw materials and suppliers, require ample space for machinery and production processes, and need access to transportation networks for distribution.
Location Considerations for Retail Businesses
Retail businesses seek high-traffic areas to maximise customer exposure, consider visibility, accessibility, and proximity to complementary businesses, and evaluate local demographics to match target markets.
Location Considerations for Service Providers
Service providers depend on accessibility to clients and customers, may require proximity to other businesses or specific industries, and consider the availability of skilled labour and professional networks.
Revision Essentials
Understand the various factors influencing business location decisions. Recognise how location impacts operational efficiency, costs, and customer satisfaction.
Action Steps for Revision
Copy these notes into your exercise book, ensuring all titles are underlined. Create Brainscape flashcards based on these notes to reinforce your understanding and aid in revision.
