4.5 Business Location

• Choosing the right business location is crucial for market access, cost, labor pool, infrastructure, and local regulations.


  True
• What are the key factors that influence a business's choice of location?

  Proximity, cost, labor, infrastructure, regulations
• Order the following factors from most to least influenced by business location:

  1️⃣ Market access

  2️⃣ Cost

  3️⃣ Labor pool

  4️⃣ Infrastructure

  5️⃣ Local regulations
• Which location type typically has the smallest labor pool?

  Rural
• What are the costs that can vary significantly by location?

  Rent, utilities, taxes, wages
• The cost of rent, utilities, taxes, and wages can vary significantly by location
• Businesses in urban areas often face more stringent local regulations than in rural
• What is a disadvantage of an urban business location in terms of cost?

  High costs for rent, utilities, wages
• What is a characteristic of a rural business location regarding customer access?

  Low
• Businesses must evaluate location factors to meet their needs and strategic objectives.
• What is the definition of business location?

  Geographical place of operations
• Match the location type with its typical characteristics:

  Urban Location ↔️ High customer access

  Suburban Location ↔️ Medium labor pool

  Rural Location ↔️ Limited infrastructure
• Which location type offers the highest customer access?

  Urban
• Match the location type with its typical regulations:

  Urban Location ↔️ Stringent

  Suburban Location ↔️ Moderate

  Rural Location ↔️ Relaxed
• The availability of skilled workers is often higher in urban and suburban areas
• Being close to customers and suppliers is important for market access and responsiveness
• What is a key factor influencing a business's choice of location in terms of proximity to customers and suppliers?

  Market access and responsiveness
• What type of infrastructure is essential for business operations?

  Reliable transportation, power, internet
• Match the type of business location with its characteristics:

  Urban ↔️ High customer access, stringent regulations

  Suburban ↔️ Moderate costs and labor pool

  Rural ↔️ Low costs, limited infrastructure
• Businesses in rural locations often benefit from lower costs but face a smaller labor pool.
• What is a key step in choosing a business location by comparing different location types?

  Finding the best fit
• What is a disadvantage of a rural business location regarding the labor pool?

  Small
• One key factor to consider when choosing a business location is proximity to customers and suppliers
• The cost of rent, utilities, taxes, and wages can vary significantly by location
• Urban locations typically have well-developed infrastructure compared to rural areas.

  True
• Local taxes and regulations are key factors to consider when selecting a business location.


  True
• Urban areas tend to have well-developed infrastructure compared to rural areas.


  True
• The labor pool is typically larger in urban areas than in rural areas.

  True
• The availability of skilled workers is typically higher in urban and suburban areas.


  True
• What level of customer access does a business in an urban location typically have?

  High
• Suburban locations offer lower costs than urban locations but higher than rural locations.

  True
• Steps in the site selection analysis method for choosing a business location:

  1️⃣ Systematically evaluate potential locations

  2️⃣ Consider factors like cost, access, and regulations

  3️⃣ Weigh the importance of proximity to customers and suppliers

  4️⃣ Compare the pros and cons of different location types
• High customer access is an advantage of urban business locations.


  True