business-location 1.8

What is the difference between location and site in a business context?

Location is a geographical area where businesses may be found, while a site is a specific place within that geographical area.

List three factors to consider when deciding where to locate a business.

Cost, availability of shop, suitability of shop size.

What is footfall in a retail context?

The number of people passing close to the business, who are potential customers.

Positive effect of a retail park on a traditional shopping area: increased customers.

More customers attracted to the area by the retail park may visit the traditional area.

Negative effect of a retail park on a traditional shopping area: increased competition.

There are many businesses already in the retail park, leading to increased competition.

Why might lower rents in a traditional area be beneficial?

Lower prices for customers may attract new businesses.

What may happen to local businesses due to the opening of a larger shopping centre?

May lead to closure of local businesses and an increase in empty shops.

What is one potential positive effect of a retail park on employment?

Employment opportunities may provide higher wages than local shops.

No effect of a retail park on traditional areas: consumer loyalty.

Consumer loyalty may prevent loss of custom to the retail park.

What should businesses consider about transport links when locating?

They should be close to main roads to ensure easy access for customers and delivery vehicles.

Why is easy access for delivery important when choosing a location?

It does not disrupt customer parking and ensures smooth operations.

What can make a renting cost in out-of-town sites appealing?

Rent for out-of-town sites is often cheaper than other locations.

Why might locating near a competitor be detrimental?

Similar businesses may already have loyal customers and offer a wider range of goods.

What role do parking facilities play in deciding on a business location?

Sufficient parking can reduce congestion and is usually free in out-of-town sites.

How might congestion impact a business location negatively?

It can lead to difficulty for locals and customers due to full car parks.

What advantage do common services offer to businesses in a location?

They provide shared resources like security and waste disposal.

How can distance affect customer travel to a business location?

Too far a distance may discourage customers due to travel costs or lack of transport.

What could be a consequence if local roads become congested due to a new shopping centre?

It may become more difficult for locals and businesses to operate.

An advantage of having other businesses nearby.

People shopping in the area may be attracted to your business.

What could happen if a business competes with similar firms offering lower prices?

It could lead to a price war and potential loss of customers.

Define the term 'infrastructure' as a factor in business location.

The physical and organizational structures needed for the operation of a business.

What is one of the key criteria when assessing the suitability of a shop?

The size of the premises and its state.

Why could it be a bad decision to locate too close to a competitor?

Low sales potential due to established customer loyalty at the competitor.

What might lower prices in traditional areas lead to?

Attraction of new businesses and more consumer choice.

Why is consumer loyalty a crucial factor for local shops?

It can mitigate potential loss of custom from competition.

What does a better environment for locals mean in terms of competition?

Less congestion and a more pleasant shopping experience.

How can a retail park contribute to a greater range of goods?

By allowing new businesses selling different products to open.

Why is location important for customer access?

Is the location easily found with access from main roads and transport options?