Theory on Location For Lesson 8

Location  Location is an important decision for a business.  This can be for head offices, retail outlets, “clicks” or “bricks” (internet or shop)

Decisions can be based on  Cost of suitable premises  Staff - cost and availability of labour  Infrastructure - transport and communication links  Market and proximity to customers  Competition and suppliers  International and/or cultural issues  Government stability and assistance (grants)

Location Customers: Does your business have to be near your customers (retail) or is proximity not an issue. How can they get to you? Raw Materials: Is it important (i.e. cost/ perishability) that the business is close to raw materials Transport Links: Is your business near major transport links: Motorways, main roads, railways, airports, ports etc. Does it need to be? Skilled Labour (workers): Are there people living nearby who have the skills for your organisation? Can local people be trained? Cost of labour: How much are wages likely to be and how many people do you need History and tradition: Some businesses locate in a certain area because of history, prestige and tradition (i.e. silicon valley) Financial Help: Businesses might receive grants from the government or the E.U to locate in a certain area.