Business Location

• What does the term "market" refer to in a business context?

  It refers to a business’ customers and consumers.
• Why is proximity to the market important for businesses like takeaways and corner shops?

  Being close to their market is important because they would miss out on sales if they are not easily accessible to their target market.
• For which types of businesses is proximity to the market not an important factor?

  Online design businesses, clothing manufacturers, and car manufacturers.
• Why can online companies and car manufacturers sell their products anywhere?

  They can usually deliver to the customer’s house or a local car dealership.
• What does the term "labour" refer to in a business context?

  It refers to people whom a business employs or would potentially want to employ.
• Why is it important for businesses to be close to high-quality labour?


  It is important to ensure they can hire employees with the necessary skills relevant to the job role.
• What type of area should businesses requiring low-skilled roles be located in?


  They should be located near any populated area.
• Where should businesses requiring high-skilled roles be located?


  They may need to be located close to big cities, university towns, or areas that attract highly-skilled people.
• Why is proximity to raw materials important for some products?

  Being close to raw materials can save money on transportation costs.
• What are bulk-gaining products?

  Products that are larger than the raw materials used to produce them.
• Why does it make sense for bulk-gaining products to be located near their market?

  It avoids the need to transport the finished product very far, as the raw materials are cheaper to transport.
• What are bulk-reducing products?

  Products that are smaller than the raw materials used to produce them.
• Why is it beneficial for businesses using bulk-reducing products to be located close to raw materials?

  It allows them to save on transportation costs by transporting the finished product instead of all individual raw materials.
• Why do many businesses prefer to be located far away from their competitors?

  To access more customers without having to fight off competition.
• For which types of businesses does being close to competitors work well?

  Businesses such as petrol stations, corner shops, and barber shops.
• Why might car dealerships and clothing shops benefit from being close to their competitors?

  Customers are likely to shop around, increasing the chances of being considered for a purchase.
• How does the location strategy differ for bulk-gaining and bulk-reducing products?

  Bulk-gaining products are located near the market, while bulk-reducing products are located near raw materials.
• What are the key factors influencing business location decisions?

  • Proximity to the market
  • Proximity to labour
  • Proximity to materials
  • Proximity to competitors
• What is the primary goal of retail companies regarding their location?

  To be located as close to their customers as possible
• Why are retailers most likely to be located in busy areas?

  Because they sell products directly to customers
• What is an exception to the location preference of retail businesses?

  Retail businesses that only sell products through the internet
• How does the location requirement differ for service companies compared to retail companies?

  Service companies sometimes need to be near customers, but can also be located anywhere
• Give an example of a service company that needs to be located near its customers.

  Train operators
• Name a type of service company that can be located anywhere.

  Web designers
• What do manufacturing companies generally prefer regarding their location?

  Cheaper rent rather than being close to their customers
• How do manufacturing companies typically transport their products?

  They transport products around the country or even further
• What factors generally decide the business location for manufacturing companies?

  Costs, especially for small businesses
• What is the significance of a product being bulk gaining for a manufacturer?

  The manufacturer may consider being located close to its market, depending on cost
• What does it mean if a product is bulk reducing for a manufacturer?

  It usually makes sense for the manufacturer to be located closer to its raw materials
• What does infrastructure refer to in the context of business location?

  The facilities that support everyday economic activities, such as roads and phone lines
• How does an efficient transport network benefit businesses?


  It enables staff to get to work easily and allows supplies and products to be moved efficiently
• How does the impact of location vary among different types of businesses?

  It depends on the type of business, such as shops needing to be conveniently located for customers
• Why might a delivery-only takeaway prefer to be located on the edge of town?

  To be in cheap premises close to good transport links
• What is e-commerce?


  1. commerce is any transaction that takes place through the internet.
• What is m-commerce?


  1. commerce is any transaction that takes place using mobile technologies.
• How do e-commerce and m-commerce benefit businesses in terms of location?

  They allow businesses to choose cheap locations, as there is no requirement to be located near customers.
• What is a common method for delivering items sold through e-commerce?

  Items are sent to customers using couriers.
• What types of businesses commonly operate online?


  Common examples include clothing companies, designers, bloggers, and influencers.
• Why do some companies choose to have both an online business and a fixed retail premises?

  This is common in retail industries such as clothing shops.
• What do many new, small businesses focus on when they are starting out?

  They focus on e-commerce and m-commerce to keep their costs low.