business locations

• Name one key factor businesses consider when choosing a location.

  Proximity to customers.
• Why is access to transport links important for a business?

  It facilitates the efficient movement of goods and people, reducing logistics costs.
• What impact does competition have on location choice?

  Businesses may choose locations with less competition or cluster with similar businesses to attract more customers.
• How can government incentives influence location decisions?

  They reduce costs through grants, tax breaks, or subsidies in specific areas.
• What is a major disadvantage of locating in rural areas?

  Limited access to skilled labor.
• Why might an online business have different location needs?

  It doesn’t require a physical location but needs strong technological infrastructure.
• What are the benefits of locating in an urban area?

  High customer footfall, access to skilled labor, and better infrastructure.
• What is the primary concern for a small retail business when choosing a location?

  Visibility and accessibility to customers.
• How do environmental factors influence location choice?

  Positive environmental factors can enhance brand reputation and customer trust.
• What is the importance of choosing the right business location?

  The right location can offer a competitive advantage by attracting customers and reducing costs, but a poor choice may lead to financial strain or limited market reach, potentially causing the business to fail.
• How does proximity to customers affect business success?

  Being close to customers enhances accessibility and sales potential, but in high-cost urban areas, the financial burden may outweigh the benefits if sales do not meet expectations.
• Why are transport links critical for some businesses?

  Efficient transport links reduce logistical costs and ensure timely delivery, but reliance on these links can make businesses vulnerable to disruptions, such as strikes or fuel price hikes.
• How do government incentives influence location decisions?

  Incentives reduce start-up costs and encourage businesses to invest in underdeveloped areas, but the benefits may be temporary if local demand and infrastructure are insufficient for long-term success.
• What challenges might a business face in a rural location?

  Rural locations lower costs but may lack skilled labor, infrastructure, and customer density, which can limit growth and necessitate additional investment in recruitment or marketing.
• Why is the cost of location a critical consideration for new businesses?

  While a prime location can drive sales, high rent and operational costs might exceed revenue, leading to cash flow issues, particularly for start-ups with limited budgets.
• what is business location

  Location for new and existing businesses is still largely determined by:

  • access to customers
  • access to factors of production
  • minimisation of costs
• government influence to business location

  Cost of labour can be affected by the availability of government grants and government taxation policies.

  The availability of low cost and suitable land resources can also be an important factor when determining location. National governments, often ensure that planning permission is available to allow large developments to proceed and they also offer incentives like tax breaks and help with recruitment and training of workers.
• costs to business location

  location costs including:

  -planning permission

  -purchasing or rental/leasing

  -refurbishment

  -business rates

  -labour costs

  -transport costs

  New businesses especially sole traders have limited capital to start off with therefore they may not be able to afford the ideal of their choice.

  Need to consider
• What should drive retail location decisions?

  Access to customers
• What is the balance that must be considered in retail location?

  Customer footfall and rental/lease costs
• How do costs of location vary in retail?

  According to likely sales and customer potential
• What can be found within each price band of retail locations?

  Both good and bad locations
• What is an anchor tenant in a shopping center?

  The first and leading tenant
• How does an anchor tenant benefit other tenants?

  By attracting customers through prestige
• What advantage does being close to competitors provide a business?

  Benefit from their marketing efforts
• Why do manufacturers of components need to be located close to users?

  To meet user needs effectively
• What is the relationship between location costs and customer potential?


  Costs vary according to customer potential
• What factors should be balanced when choosing a retail location?

  Customer footfall and rental costs
• What are footloose businesses?

  Businesses that move to optimal locations
• What factors allow footloose businesses to relocate?

  Changing trade patterns, improved communications, capital flows
• How do economies of scale influence international location decisions?

  They lower average production costs
• Why have large factories emerged in Europe for products like cakes?

  To supply products throughout Europe efficiently
• What has contributed to the falling costs of international transport?

  Improvements in transportation technology
• How do political factors influence business location?

  Through tariffs and access to trading blocs
• Why do companies like Toyota set up production in the UK?

  To gain free access to European markets
• What is transfer costing?

  Inflating profits in low-tax countries
• Why do companies consider international wage levels?

  To find skilled and willing workforces
• How can freedom from restrictions influence business location?

  It reduces costs and production constraints
• What role does employment law play in location decisions?

  Less strict laws can lower operational costs
• What does infrastructure relate to in business location?

  Access to markets