Decisions on Location (Edexcel IGCSE Business): Exam Questions

The Alternative Drum School (TADS) was set up in the wealthy area of Cricklade, England in 2008 by Ollie Tanner who had a passion for and enjoyed drumming. Ollie invested all of his savings into the drumming school. He saw the potential of being located away from other drumming schools.

Ollie promotes his business by writing columns in local papers, performing at local music festivals and by word of mouth recommendations. He has invested heavily in computer technology to allow students to produce the music they enjoy playing.

Ollie finds it difficult to maintain a good work-life balance. Ollie currently works 60 hours a week in a business that does not have reliable profits.

Thread is a small clothing business based in a village in the Scottish Highlands. The owner, Isla, designs and makes handmade knitwear using locally sourced wool. She currently sells her products from a small shop in the village, but most of the locals already own her products, and footfall from tourists is low outside of the summer months. Isla has recently set up a website and has started receiving online orders from customers across the UK and Europe.

Huawei is a leading global provider of information and communications technology, infrastructure and smart devices. In March 2011, over one million of its C8500 smartphones were sold in China following its launch.

It now manufactures a wide variety of different products including Huawei smartphones, watches and tablets. In recent years Huawei has won many awards. In 2018 it was named the 68th most valuable brand by Best Global Brands. In 2019 it introduced a smartphone which had new photographic technology.

Artify Studio was set up in 2015 by Tay Hui Jae in the busy Kampong Glam area of Singapore. Artify Studio’s aim is to have ‘a communal art space where people can come together and paint, where people would be given as much creative freedom as they would have if they were in their own spaces.’

Artify Studio provides many services including its popular Liberty Art Jam where customers can paint as well as listen to music. The studio offers a Corporate Art Jam and Regular Kids Classes. Customers can purchase art materials after attending the studio. Artify Studio is a profit-making organisation with a social element. It employs seven part-time people, all of whom are art enthusiasts

Artify Studio is planning to open a second art studio in the small mining town of Sungai Lembing in Malaysia. It will recruit highly skilled employees to provide a high standard of service.

In order to advertise the opening of the second art studio, Artify Studio need to look at promotional cost.

It costs 459.50 MYR for 1,000 colour leaflets to be printed. The cost of delivery is 17.87 MYR per hour.

Stitch is a small tailoring business based in a busy high street in Milan, Italy. The owner, Luca, makes custom suits and dresses for local customers. Rent on the high street is €3,000 per month and continues to rise. Luca has noticed that several other shops on the high street have recently closed. However, his business relies heavily on taking customers' measurements in person and offering face-to-face consultations. A friend has suggested that Luca could save money by closing the shop and moving the business entirely online.

Kindle is a small candle-making business in Queenstown, New Zealand. The owner, Maia, currently makes candles from her home workshop and sells them at local weekend markets. She has saved NZ$25,000 and wants to grow the business. Maia is considering where to base the business going forward. A small retail unit has become available near the town centre for NZ$1,200 per month, while a friend has offered Maia a large garage on the outskirts of town for NZ$400 per month, which would give her more production space but no passing trade.