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LOCATION OF BUSINESS.

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Presentation on theme: "LOCATION OF BUSINESS."— Presentation transcript:

1 LOCATION OF BUSINESS

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4 FACTORS AFFECTING MANUFACTURING BUSINESS
EXTERNAL ECONOMIES OF SCALE Support businesses MARKET If add weight or is bulky or fresh eg. Drinks WATER SUPPLY Reliability, need large quantities? RAW MATERIALS Number of suppliers Bulk, weight, fresh

5 FACTORS AFFECTING MANUFACTURING BUSINESS cont.
POWER reliability, near supply if large quantities GOVERNMENT INFLUENCE Incentives eg. Tax Laws eg. Nuclear power CLIMATE eg. Silicon chips in dry environment OWNER PREFERENCES For small factories/individual owners AVAILABILITY OF LABOUR Labour intensive Level of skills

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8 FACTORS AFFECTING RETAIL BUSINESS
SHOPPERS Popular area draws more customers Type of shopper eg. Income, gender, age RENT more central makes rent higher Less popular areas have lower rentals SECURITY Crime rates can stop retailers Gives increased costs thus lower profits SUITABLE VACANT PREMISES - Space and availability

9 FACTORS AFFECTING RETAILING BUSINESS cont.
CUSTOMER PARKING Convenience increases sales Lack of parking will decrease sales SHOPS NEARBY Attracts other customers Competition can attract more customers DELIVERY VEHICLE ACCESS - Access to delivery vehicle is NB due to goods supply and leaving

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12 FACTORS AFFECTING SERVICE BUSINESS
TECHNOLOGY Allows business to be located away from customers eg. Call centre. Thus can take advantage of cheaper rents RENT Essential services eg. Doctors can choose to locate in low rent areas CLIMATE Affects business linked to tourism eg. Hotels OWNER PREFERENCE - Owner can choose location often near where live

13 FACTORS AFFECTING SERVICE BUSINESS
NEAR OTHER BUSINESSES Supported by other businesses eg. Equipment repairers near factories LABOUR Intensive thus near labour supply Require skilled labour Labour moves to where business is CUSTOMERS Near customer as quick response time needed Unless minimal contact required

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15 FACTORS AFFECTING MOVING ABROAD
NO ROOM FOR EXPANSION RENTS/TAXES RISING GOVERNMENT GRANTS GET AROUND TARIFF BARRIERS NEW MARKETS OPENING UP RAW MATERIAL SOURCE RUNS OUT LABOUR DIFFICULTIES Wages increase Strikes skills

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