What is meant by a business choosing a location close to its market? A company that manufactures school uniforms is considering opening a small fitting and ...
Question 1 Report
What is meant by a business choosing a location close to its market? A company that manufactures school uniforms is considering opening a small fitting and collection shop in a district with six schools. Its main factory will remain outside the city. Parents have complained that returning incorrectly sized items by post is slow. The company wants the new location to improve service, not manufacturing output.
(a) Identify the market for the fitting and collection shop. [1]
(b) Which activity will remain at the factory? [1]
(c) Explain one reason why the district location could improve customer service. [2]
(d) What possible cost could increase because the business operates both a factory and a shop? [1]
Answer Details
(a) The market is parents or students buying school uniforms, including customers from the local schools [1]. A location close to its market means locating near the customers it serves.
(b) Manufacturing, or production, of uniforms will remain at the factory [1].
(c) Parents can try on, collect or return items locally [1]. This makes the process quicker and more convenient for customers [1], particularly because postal returns have been slow.
(d) Rent is one cost that could increase because the business operates both a factory and a shop [1]. Wages, utilities or transport between the two premises are also acceptable.
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