1. AS Level Business Studies Location

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3. Objectives Understand factors affecting location Know about government influences on location Answer questions based on short Working Lunch video clip

4. Video Watch this short video clip and answer the following question: 1.What are the reasons for Toyota moving back to the UK and specifically Derby? Strength of £ UK sales Rich source of skilled workers Good communications package

5. Making a location decision Businesses often set up: Near home Increased number being set up at home Via the web The costs and benefits affecting a decision may be: Quantitative – they can be measured in terms of monetary terms, like transporting goods to consumes. Qualitative – cannot be measured against monetary terms, like the distance staff have to travel to work.

6. Technology Communications often rely on fast broadband Technology is more widely available People can set up with less space A science Park supports businesses with: Start-up, incubation, growth support An environment for international relations to develop Links with centres of knowledge creation like universities etc “The Region has lacked an appropriate focal point to concentrate the efforts of business, Government initiatives and the academic world in the generation of wealth through the application of technology.”

7. Location Costs Fixed location costs – one-off cost of setting up business including search costs, planning permission, refurbishment, purchase cost, government help. Other ongoing fixed cost – Rent or leasing charges, business rates, labour. Variable location costs – labour costs and transport costs

8. Markets For some businesses being close to their market is often the most important factor. These include: Businesses that produce product that are more bulky than the raw materials, like North Sea Oil Platforms Suppliers of components may set up close to main customer, JIT has influenced this Financial firms locate in London The growth of the tertiary sector and decline of ‘heavy’ industry in many footloose industries Service industries locate near market Site factor, choosing one site rather than another, like WH Smiths

9. Transport Links M4 Corridor between London and Wales Exporters locate near airports and docks Channel tunnel improved trade links and encouraged firms to locate in the South East Transport links, near to motorways etc

10. Land The cost Location near rivers or coasts for waste disposal Amount of space available Potential for expansion Planning permission Geographical suitability Good infrastructure Environmental considerations

11. Government Influences The government have always helped business, like the North East when the ship building industry declined. Regional selective assistance – Government grants for investment projects that would safeguard jobs in assisted areas. These are areas with available workforce and flexibility for example. EU structural and cohesion funds – The EU main way of supporting social and economic restructuring. Used to tackle regional disparity, infrastructure, resources etc. Regional Development agency – A government body that promotes economic development.

12. Government Influences Learning and skills council – Aims to make England better skilled and more competitive. European Investment Bank – Gives grants to UK industries. Public sector operations – Government locates offices in areas facing difficulties in order to directly influence employment and spending.

13. Plenary Understand factors affecting location Know about government influences on location Check for understanding