Business location

• What must business owners consider when choosing a location?

  Proximity to customers, labour, materials, competitors
• Why is proximity to the market important for certain businesses?

  It ensures accessibility to their target market
• Which types of businesses benefit from being close to their market?

  Takeaways, corner shops, hairdressers
• What does the term 'labour' refer to in a business context?

  People whom a business employs or wants to employ
• How does the need for proximity to labour differ for skilled versus unskilled roles?

  Skilled roles need to be near talent-rich areas
• What are bulk-gaining products?

  Products larger than the raw materials used
• Why is proximity to raw materials important for bulk-reducing products?

  It reduces transportation costs for the goods
• Which type of business would benefit from being close to its market?

  A bulk-gaining business like a bike manufacturer
• What is the advantage of businesses being located far from competitors?

  Access to more customers without competition
• Why might car dealerships want to be close to each other?

  Customers are likely to shop around for cars
• How does being close to competitors affect sales for certain businesses?

  It increases visibility and shopping options for customers
• What factors influence a business's location decisions?

  • Proximity to market
  • Proximity to labour
  • Proximity to materials
  • Proximity to competitors
• What are the differences between bulk-gaining and bulk-reducing products?

  • Bulk-gaining: Larger than raw materials (e.g., bikes)
  • Bulk-reducing: Smaller than raw materials (e.g., tins of tuna)
• How does the nature of the business activity affect location decisions?

  • Different businesses have varying needs for proximity
  • Service-oriented businesses prioritize market access
  • Manufacturing businesses consider raw material access
• What factors must business owners consider when choosing a location?

  Type of business, proximity to customers
• Why do retail companies prefer to be located near customers?

  They sell products directly to customers
• Where would a retail business that sells online likely be located?

  In a low-cost area away from customers
• What is a characteristic of service companies regarding location?

  They can be located anywhere or near customers
• Which service companies need to be located near customers?

  Train operators and taxi companies
• What do manufacturing companies prioritize when choosing a location?

  Cheaper rent over proximity to customers
• How does the nature of a product affect a manufacturer's location decision?

  Bulk gaining products may need market proximity
• What does infrastructure refer to in a business context?

  Facilities supporting economic activities
• Why is an efficient transport network important for businesses?

  It allows easy staff access and supply transport
• How might a delivery-only takeaway choose its location?

  In cheap premises near good transport links
• What are the key considerations for business location decisions?

  • Proximity to market
  • Access to labor
  • Availability of materials
  • Competition presence
  • Cost of rent
  • Infrastructure quality
• How does the type of business influence location decisions?

  • Retail: Close to customers
  • Service: Varies, some need proximity
  • Manufacturing: Focus on cost, not proximity
• What must business owners consider when choosing a location?

  Type of business and proximity to customers
• Why do businesses consider proximity to customers?

  To ensure easy access for customers
• What is e-commerce?

  Transactions that occur through the internet
• What is m-commerce?

  Transactions using mobile technologies
• How do e-commerce and m-commerce affect business location choices?

  They allow businesses to choose cheaper locations
• What is a courier?

  A business that transports goods for payment
• Why do some companies choose both online and fixed retail premises?

  To reach more customers in retail industries
• What do new small businesses focus on to keep costs low?

  E-commerce and m-commerce strategies
• What are the main benefits of e-commerce and m-commerce?

  • Lower costs
  • Flexible working hours
  • Access to a larger market
  • Open 24/7
  • Low-cost marketing and promotion