The Main Factors Influencing The Location And Relocation Decisions Of A Business:
Muhtasari
Where a business sets up can decide whether it thrives or struggles. A shop in the wrong street, a factory far from its materials, or a call centre where wages are too high, each location choice ripples through costs, sales and profit for years.
In this lesson you will learn the factors that influence where manufacturing and service businesses locate, what a firm weighs when choosing a country, and the role of legal controls. You will learn to recommend and justify a location for a given business.
Malengo
- Factors relevant to the location decision of manufacturing businesses and service businesses
- Factors that a business could consider when deciding which country to locate operations in
- The role of legal controls on location decisions
- Recommend and justify an appropriate location for a business in given circumstances
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- Which factor matters most when locating a high-street coffee shop? A. nearness to iron ore B. footfall and passing trade C. distance from all customers D. low visibility Answer: B
- A manufacturer using heavy, bulky raw materials should locate: A. far from materials B. near its raw materials or a port C. in a quiet residential street D. where rent is highest Answer: B
- A reason to locate in another country is: A. higher wages there B. to avoid tariffs by producing inside a trade area C. fewer customers D. worse infrastructure Answer: B
- Which is a legal control on location? A. footfall B. planning and environmental laws C. the firm's logo D. the minimum wage of rivals Answer: B
- When relocating to cut costs, a key risk is: A. lower rent B. a shortage of suitably skilled staff in the new area C. higher profit D. better transport Answer: B
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Vitabu Vinavyopendekezwa
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Sehemu ya kitabu
Location, Location, Location: Where Do We Make It?
How do organizations decide where to put their production facilities? What choices must be made in designing the facility?
"Introduction to Business: Location, Location, Location: Where Do We Make It?" by OpenStax, OpenStax, Rice University, licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). Source: https://openstax.org/books/introduction-business/pages/10-3-location-location-location-where-do-we-make-it. Access for free at https://openstax.org/books/introduction-business/pages/1-introduction
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