Business - 9225 OxfordAQA

Business Location

Bayani Gaba-gaba

Smelting aluminium takes an enormous amount of electricity. So much, in fact, that the cost of the power matters more than the cost of the ore, which is why aluminium smelters are built beside cheap hydroelectric dams and the bauxite is shipped thousands of kilometres to reach them. Meanwhile a sandwich shop cannot survive two streets away from the office block that feeds it. Same decision, opposite logic.

Choosing where to put a business is one of the few decisions that is genuinely hard to undo. A wrong price can be changed next week and a wrong advertisement can be pulled, but a factory on the wrong side of a country is there for a generation. In this lesson you will work through the six factors the specification names, learn why they rank differently for a manufacturer, a retailer and a service business, see how governments use money and rules to pull businesses towards particular places, and practise weighing two possible sites against each other with the figures in front of you.

Manufura

  1. Factors influencing the location decision of a business.

Taswirar tunani

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Takardar Darasi

Two businesses, two completely different answers to the same question. The smelter goes where the electricity is cheapest because electricity is by far its largest cost, and it can afford to ship raw material in and finished metal out. The sandwich shop goes where the customers already walk, because a sandwich is not worth a detour and nobody will cross a town for one.

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Nazarin Darasi

Barka da kammala darasi akan Business Location. Yanzu da kuka bincika mahimman raayoyi da raayoyi, lokaci yayi da zaku gwada ilimin ku. Wannan sashe yana ba da ayyuka iri-iri Tambayoyin da aka tsara don ƙarfafa fahimtar ku da kuma taimaka muku auna fahimtar ku game da kayan.

Za ka gamu da haɗe-haɗen nau'ikan tambayoyi, ciki har da tambayoyin zaɓi da yawa, tambayoyin gajeren amsa, da tambayoyin rubutu. Kowace tambaya an ƙirƙira ta da kyau don auna fannoni daban-daban na iliminka da ƙwarewar tunani mai zurfi.

Yi wannan ɓangaren na kimantawa a matsayin wata dama don ƙarfafa fahimtarka kan batun kuma don gano duk wani yanki da kake buƙatar ƙarin karatu. Kada ka yanke ƙauna da duk wani ƙalubale da ka fuskanta; maimakon haka, ka kallesu a matsayin damar haɓaka da ingantawa.

  1. Which one of the following businesses is most likely to locate close to its customers? A. An aluminium smelter B. A fish canning factory at a port C. A quarry crushing stone D. A ready-mixed concrete plant Answer: D
  2. Which one of the following is a government influence on where a business locates? A. The cost of raw materials B. The number of competitors nearby C. The refusal of planning permission D. The wage rate paid by other employers Answer: C
  3. A site costs 40,000 a year in rent and 260,000 a year in wages. A second site costs 70,000 in rent and 215,000 in wages. Which site has the lower total annual cost, and by how much? A. The first, by 15,000 B. The first, by 30,000 C. The second, by 15,000 D. The second, by 45,000 Answer: C
  4. Which one of the following best explains why car showrooms often locate next to each other? A. Rents are lower where competitors are already trading B. Customers travel in order to compare several cars in one visit C. Governments require car dealers to be grouped together D. Cars are cheaper to transport in large quantities Answer: B
  5. Which one of the following is most likely to reduce the importance of a high street location for a retailer? A. A rise in local wage rates B. Selling through a website with national delivery C. An increase in the rent of out-of-town units D. A competitor opening on the same street Answer: B

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