1. Business Location

2. Business Location

3. Business Location
In general a business will look to locate its activities where the costs of production are minimised
The nature of the business will heavily influence location decisions:
Type and nature of market
Type of business – production of goods or services, retail, wholesale?
Sector – primary, secondary, tertiary, quaternary?

4. Quantitative Factors

5. Quantitative Factors
Factors that can be measured using quantitative techniques:
Decision trees
Investment appraisal
Critical Path Analysis, etc.
Generally associated with the costs of production:

6. Cost Fixed Costs Variable Costs Site costs
Availability of grants/subsidies
Cost of loans associated with set up
Cost of utilities - gas, water, electricity
Cost of hiring fixed salaried staff
Cost/availability of technology
Variable Costs
Nearness to market
Cost of raw materials
Cost of sourcing supplies
Transportation costs
Bulk increasing
Bulk reducing
Nearness to a supply of skilled/unskilled labour

7. Location
Image copyright: Joshua Argeliss,
Others may depend in some cases on specific locations – in busy city shopping areas, for example – but could have a virtual location through developments in technology
Some businesses have little choice where they locate – a coal mine has to be near a source of coal but transporting the coal to where it is needed can be expensive

8. Qualitative Factors

9. Qualitative Factors
Factors that cannot be quantified but which may have a significant impact on the location decision
May influence the long term outcome of the location decision
Need to consider impact on and response from stakeholders in the business

10. International Location

11. International Location
Many qualitative factors will have to be considered in seeking to locate internationally
How easy is it to get in to the country (for example, locating in China can present many problems, not least of which are the language and cultural barriers that exist)