1. IB Business & Management 5.5 Business Location

2. Location Decisions Deciding where to locate a new business is really important. What could happen if the wrong location is chosen?

3. Location within a City/Country

4. Task Watch the video clip about Tom Sutherland choosing a premises for his business. What considerations is he thinking about in choosing the location?

5. Task – In pairs discuss 10 mins The following businesses want to open in the Shanghai area What factors do you think the following businesses would be important when deciding where to locate? Write down as many factors as possible What kind of areas in Shanghai would they be likely to locate?

6. A new kebab shop

7. A car component manufacturer who supplies to Toyota

8. A Foxconn Factory to produce iPhones

9. A new Ikea store

10. An insurance company call centre

11. A cosmetic surgery clinic

12. A new H&M store

13. A Travel Agency

14. A boutique selling designer clothes

15. Task Draw a diagram to show all of the different factors affecting location that we have discussed Business Location

16. Factors affecting location decisions

17. TASK Are the following statements true/false. Explain why….

18. Businesses will always locate as far away from their competitors as possible

19. The cheapest location is usually the best one to pick

20. It is more important for tertiary sector businesses to locate near to their customers

21. Manufacturing businesses must locate close to their suppliers so they can get their raw materials quicker

22. International Location

23. Multinational companies can operate all over the world There are some additional factors which firms might take into consideration in deciding which countries to locate in…. Can you think of any?

24. Additional international factors……. Avoiding trade barriers Financial Incentives Cost of Labour Skill of labour Language barriers Proximity to markets Proximity to suppliers Political stability Infrastructure

25. Task Look at the 2 examples of international business location decisions. Why might they have made this location decision?

26. Nissan Locating in Sunderland UK

27. HSBC locating their call centre in India

28. Location and the changing environment…… How could these issues impact on business location decisions?

29. The rise of E-Commerce

30. Decrease in shipping costs

31. Task Watch the video…… ‘How containerization shaped the modern world’

32. Emerging Markets

33. The rise of teleworking

34. RELOCATION

35. Think…. Industrial inertia describes a stage at which an industry prefers to run in its former location although the main alluring factors are gone. What factors might make a business consider relocation? Relocation is usually a decision that is costly in the short-term but cost saving in the long term

36. Difficulties of Relocation: Physical Relocation costs Loss of skilled and loyal workers Possibly new customers and suppliers needed Potential damage to corporate image Redundancy payments Loss of production during transition phase