Business Location (AQA GCSE Business): Flashcards
Exam code: 8132
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Why is choosing a good location important for a business?
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Cards in this collection (13)
Why is choosing a good location important for a business?
A good location can help a business attract customers, reduce costs, remain competitive and enhance its reputation. Choosing the wrong location can cause a business to fail.
Businesses that rely on ___________ are best located where interested customers visit regularly, such as close to their homes.
Businesses that rely on passing trade are best located where interested customers visit regularly, such as close to their homes.
True or False?
Every business needs to be located close to its customers.
False.
Businesses offering specialist or unique services, such as luxury spas and theme parks, can locate further away because customers are often willing to travel to enjoy them.
How can being close to customers help a business that offers delivery services?
Being located close to where customers live or work helps the business minimise its transportation costs.
Why might a business locate near its suppliers?
A business may locate near its suppliers if the delivery of raw materials is time critical, so that materials such as fresh fruit arrive fresh and unblemished.
True or False?
A business may locate close to the source of its materials if they are expensive or difficult to transport.
True.
Locating near the source reduces transportation costs. For example, makers of bricks and concrete often locate close to quarrying areas.
Why might a hi-tech business locate near a university?
Locating near a university gives the business access to a skilled pool of labour.
Why do some businesses move their operations overseas?
Some businesses move overseas to countries with lower average wage costs.
Reliable, low-cost public transport or a fast road network allows workers to _____ relatively long distances to work.
Reliable, low-cost public transport or a fast road network allows workers to commute relatively long distances to work.
Why might a business choose a location where rivals are concentrated?
A concentration of similar businesses can act as a draw to customers, bringing more potential buyers to the area.
Why might a business choose a location where few rivals exist?
With few rivals, the business can capture a significant market share and avoid the need to compete on price.
How can a small business owner minimise location costs?
A small business owner can run the business from home, use shared office spaces or ask employees to work remotely.
True or False?
A business should always choose the location with the cheapest rent.
False.
The cost of property must be weighed against other factors, particularly proximity to customers and the level of passing trade.
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