Business Location Flashcards
All 7 cards in this deck
Why might a business locate close to its market?
Customers can reach it easily, so it gains passing trade and sales — important for shops and services.
Why might a business locate close to a supply of labour?
Workers with the right skills are easier and cheaper to recruit, and staff have a shorter journey to work.
Why might a business locate close to its materials?
It cuts transport costs and time — important where materials are heavy, bulky or perishable.
How does proximity to competitors affect a location decision?
Locating near competitors can attract customers who want to compare products, but locating away from them avoids losing customers to rivals.
How does the nature of the business activity affect where a business locates?
Different activities need different sites — a manufacturer needs a large, cheap site with good transport links, while a hairdresser needs a high-street site near customers.
How does e-commerce affect a small business's location decision?
It can sell nationally from cheap premises or from home instead of paying high rent for fixed premises, so being near the market matters less.
What are the steps to recommend and justify a location for a small business?
e.g. a new sandwich shop choosing between the town centre and an industrial estate
- Identify the key location factors for that business: passing trade and proximity to market.
- Use the evidence given, e.g. footfall figures and the rent of each site.
- Choose one and justify it against the alternative: town centre, as high footfall outweighs the higher rent.