location a level business- p1

eduqas

what are factors that need to be considered when locating a business (there is 7)

1) market and customers: The business should consider the size and characteristics of its target market, including population, income, demographics, demand and footfall

2)Labour: The business must consider the availability, skills, productivity and cost of labour.

3)Land and premises: price , size , availability

4) Transport, suppliers and raw materials

5) Infrastructure and technology

6)Competition

7)government influence: government can affect business location through: grants, subsidies, tax incentives ext

what relation do these factors have to different types of businesses

Retail business: prioritise customers and footfall ,accessibility , transport , competition

Manufacturing business: they may prioritise raw materials, suppliers, labour

Technology business: they may prioritise skilled labour , quality of life and access to finance

new business : prioritise finance , labour and resources

what are the advantages / disadvantages of a business choosing a location with lower costs

Location with lower costs

Advantages

• lower rent

• lower wages

• potentially lower operating costs

• lower break-even point

• may be more suitable for a start-up.

Disadvantages

• potentially fewer customers

• poorer transport

• less skilled labour

• fewer opportunities for growth.

what are the advantages / disadvantages of a business choosing a location with higher costs

Location with higher costs

Advantages

• greater access to customers

• higher footfall

• skilled workforce

• better infrastructure

• better transport links

• potentially higher sales.

Disadvantages

• higher rent

• higher wages

• higher operating costs

• potentially greater competition.