Locations

• What is the definition of location in business?

  A geographical area where businesses are found
• What is the definition of a site in business?

  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?

  The number of people passing close to the business
• What are the positive effects of a retail park on a traditional 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 on a traditional shopping area?

  • Increased competition from the retail park
  • Larger center offering greater range and lower prices
  • Potential closure of traditional businesses
  • More congestion on local roads
  • Employment losses as workers move to the new center
• What are the 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 deliveries
  • Competition
  • Presence of other businesses
  • Common services available
• What are the negative factors to consider when deciding on a business location?

  • Competition from well-known businesses
  • Congestion from high customer volume
  • Distance to travel for customers
  • Higher costs than other locations
  • Need to conform to standards of other businesses
• Why is locating near a competitor not always beneficial?

  • Competitors may have loyal customers
  • Competitors may offer a wider range of goods
  • Competitors may have lower prices
  • Potential for low sales due to competition
• What is a potential consequence of increased competition from a retail park?

  Closure of traditional businesses
• How can lower rents in a traditional area benefit customers?

  It may lead to lower prices for customers
• If a business is located near a main road, what advantage does it have?

  Easy access for customers and deliveries
• What might happen if a traditional shopping area has many empty shops?

  It may lead to a loss of custom
• What is one reason why customers might prefer a retail park over a traditional shopping area?

  Greater range of products available
• How can employment opportunities in a retail park affect local shops?

  It may lead to employment losses in local shops
• If a business is located far from public transport, what issue might arise?

  Customers may find it difficult to travel
• What could be a consequence of having too many similar businesses in one area?

  Potential for a price war among businesses