location

• What is the definition of location in a business context?


  Location is a geographical area where businesses may be found.
• What is the definition of a site in a business context?


  The site is a specific place within a geographical area.
• What factors should be considered when deciding where to locate a business?

  • Cost
  • Availability of shop
  • Suitability of shop (size, state, facilities)
  • Infrastructure
  • Closeness to market
  • Ease of access for customers and deliveries
  • Passing trade (footfall)
• What does footfall refer to in a business context?


  Footfall is the number of people passing close to the business.
• What are the positive effects of a retail park shopping centre on a nearby traditional local shopping area?


  • More customers attracted to the area
  • Lower rents leading to lower prices
  • Less congestion improving the environment
  • New businesses opening with different products
  • Greater range of goods for locals
  • Employment opportunities with higher wages
• What are the negative effects of a retail park shopping centre on a nearby traditional local shopping area?


  • Increased competition from the retail park
  • Larger centre offering a greater range and lower prices
  • Potential closure of traditional businesses
  • More congestion on local roads
  • Employment losses as workers move to the new centre
• What are some factors that may have no effect on a traditional shopping area due to a retail park?


  • No loss of custom due to consumer loyalty
  • Traditional area not close to main road
  • Different goods sold in specialty shops
• What are the positive factors to consider when deciding on a business location?

  • Cost of rent
  • Transport links
  • Easy access for customers
  • Availability of car parks
  • Easy access for delivery
  • Presence of competition
  • Proximity to other businesses
  • Availability of common services
• What are the negative factors to consider when deciding on a business location?

  • Competition from well-known businesses
  • Congestion due to high foot traffic
  • Distance customers must travel
  • Higher costs compared to other locations
  • Need to conform to standards of other businesses
• Why might locating near a competitor not always be beneficial?


  • Competitors may have loyal customers
  • Competitors may offer a wider range of goods
  • Competitors may have lower prices leading to price wars
  • Potential for low sales due to competition