Business location

Question 1

Why is selecting the location so important?

Answer 1

• costs
• sales
• image

Question 2

How has the internet changed location decisions?

Answer 2

• Upsurge in the use of the internet has forced businesses to think about the way in which they sell their products or services
• Excellent opportunity for small and medium businesses to compete with larger more established competitors
• If a customer is shopping via your website, do they care whether you have a store on Oxford Street? No they simply want the same product at the best price, delivered to their door. Eg. Dell - maximise sales through internet without the costs of setting up shops

Question 3

What are benefits and costs of locating overseas?

Answer 3

• Cheaper labour
• Access to resources that are not easily available in the UK
• Financial incentives from foreign governments
• Avoids protectionist measures by foreign governments - tariffs, imports and quotas
• The market overseas may be growing fast

Question 4

Limitations of locating overseas:

Answer 4

• There may be different rules and regulation in other countries
• Customers may have different tastes
• Negative publicity - taking jobs away