Business Location

Question 1

Why is selecting a location important?

Answer 1

• Cost
• Sales
• Image

Question 2

How has the internet changed location decisions?

Answer 2

• Increase in use of internet has forced businesses to reconsider the way they sell their products and services
• Excellent opportunity for small and medium businesses to compete with larger more established competitors

Question 3

If a customer is shopping on your website, will they care if you have a store on Oxford street?

Answer 3

NO - they simply want the same product at a better price delivered to their door.

E.G Dell: maximise sales through internet without cost of setting up stores

Question 4

Costs of Locating overseas

Answer 4

• Different rules and regulations
• Customers may have different taste
• High costs from having to move
• Negative publicity: taking jobs away

Question 5

Benefits of Locating overseas

Answer 5

• Cheaper labour
• Access to resources that are not available in UK
• Financial incentives from foreign governments
• Avoid tariffs by actually operating there
• Growing markets