AS Business Studies: Locating the Business

Hey, here are some revision notes mainly for poeple taking the AQA AS Business Studies exam Unit 1, but can be used for other exam boards too. I hope this helps you to revise! Please rate and comment on how to improve :D

HideShow resource information
  • Created by: I P B
  • Created on: 17-11-10 12:10
Preview of AS Business Studies: Locating the Business

First 5 words of the document:

Locating the Business

Other pages in this set

Page 2

Preview of page 2

Here's a taster:

Specification
Locating the Business The factors should include:
· factors influencing start-up technology, costs, infrastructure, the
location decisions. market and qualitative factors.
Candidates should understand that
their relative importance may vary
according to the type of business.…read more

Page 3

Preview of page 3

Here's a taster:

Background Information
One of the first issues facing a new business will be where to locate its operations.
Small businesses are started in various locations - where depends on several
factors
Technology has made the choice much easier, particularly for service-related
businesses.…read more

Page 4

Preview of page 4

Here's a taster:

Factors affecting Location
Costs
Costs associated with location decisions are likely to be crucial. Break even analysis
can be used to help decide a location based on financial information.
Costs and revenues of different locations will be considered.…read more

Page 5

Preview of page 5

Here's a taster:

Factors affecting Location
Labour
When a start-up needs to hire employees, then access to a reliable pool of staff
with relevant skills is important
Businesses that are labour-intensive often look to locate in areas of traditionally
low wages
Labour intensive = a work process in which labour represents a high proportion of
total costs. Such a situation is most likely to occur when a firm is operating on a job
or batch production system. This contrasts with firms who are capital intensive.…read more

Page 6

Preview of page 6

Here's a taster:

Factors affecting Location
Technology and Home Based Start-Ups
The widespread adoption of low-cost, easy-to-use information technology
solutions means that many entrepreneurs start their businesses at home. In fact,
pretty much everyone who starts a business does so from home, at least whilst
they develop the business idea, conduct market research and decide whether or
not to launch.…read more

Page 7

Preview of page 7

Here's a taster:

Factors affecting Location
Advantages and Disadvantages of running a business from home (teleworking)
Advantages Disadvantages
Reduced costs, because the entrepreneur Requires greater self-discipline
does not have to pay for premises
Less travelling, so that more time can Work is often interrupted ­ e.g. by callers
actually be spent working instead of to the home or by family, children, pets
travelling. Although customers and
suppliers might still need to be visited.…read more

Page 8

Preview of page 8

Here's a taster:

Qualitative and
Quantitative Factors
Quantitative = numerical data that can be stored and used in a form such as a
database or spreadsheet
Examples of Quantitative Factors:
­ Cost of land and buildings
­ Availability of government grants
­ Cost of utility bills ­ gas, water, electricity
­ Cost of employing managerial staff
­ Transport costs of material
­ Cost of local materials
­ Wage levels in the area
­ Bulk increasing or reducing activity
Qualitative = information that can not easily be put in…read more

Page 9

Preview of page 9

Here's a taster:

Exam Tips
Most start-ups begin in the back bedroom, kitchen or garage - i.e. where costs are
low. The rapid improvement in communication and collaboration technologies
makes it possible to quite large businesses to operate without traditional business
locations!
A start-up often changes location several times in the early years of trading,
adding more space as required. Having too much paid-for space increases the
fixed costs of a start-up and raises the break-even level of output.…read more

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all resources »