1.5 Business location

• Why is the cost of space higher in prime retail locations?

  High demand
• Manufacturing businesses often locate in industrial areas due to lower space costs.
• Industrial estates are ideal for manufacturing due to the availability of land and infrastructure.
• Why is customer proximity less critical for manufacturing businesses?

  Direct customer contact is minimal
• Customer proximity is essential for retail businesses to attract foot traffic
• Match the type of business location with its characteristics for retail businesses.

  High Street/Town Centre ↔️ High foot traffic, high rent

  Out-of-Town/Retail Park ↔️ Lower rents, accessible by car

  Industrial Estate ↔️ Lower rents, more space
• Why are rural locations often better suited for manufacturing businesses?

  Lower land costs
• Access to suppliers is more vital for manufacturing businesses than retail businesses.
• Customer proximity is equally important for retail and manufacturing businesses.

  False
• Retail businesses prioritize proximity to suppliers over customers.

  False
• The choice of business location depends on balancing customer accessibility, cost, and suitable facilities.


  True
• Retail businesses require skilled customer service staff, while manufacturing needs labor with specific manufacturing skills.


  True
• Order the priorities of a manufacturing business when choosing a location.

  1️⃣ Access to Suppliers

  2️⃣ Infrastructure

  3️⃣ Labor Availability

  4️⃣ Cost of Space
• Urban locations are ideal for retail businesses due to customer proximity.

  True
• What does the term 'business location' refer to?

  Geographical area of operations
• What type of labor is needed for a manufacturing business?

  Specific manufacturing skills
• What type of staff do retail businesses typically need?

  Skilled customer service staff
• Why is a high street location not suitable for manufacturing?

  Lack of space and high costs
• Lower space costs in industrial areas increase profitability for manufacturing businesses.
• Access to suppliers is more critical for manufacturing businesses than for retail businesses.

  True
• Home-based locations are suitable for small retail businesses due to low overhead costs.