Pages in this set

Page 1

Preview of page 1
Bullet Point 4: Factors affecting UK location decisions by manufacturing businesses (Factors impacting UK
Location)

Definitions: UK Locational Decision Key Factors/Drivers:
Offshoring : the relocation of a Access to skilled, highly flexible labour force
business process or capacity from a Access to EU market
home country to another Access to…

Page 2

Preview of page 2
The reasons that a business will decide to re-shore to the UK has many depends upon factors:
Products
Resource requirements
Financial situation
Objectives
Customer expectations

To what extent do you think that offshoring manufacturing from the UK to low cost countries overseas will
inevitably lead to increased profitability?

Page 3

Preview of page 3
Bullet Point 4: Factors affecting UK location decisions by manufacturing businesses (Factors impacting
Off-shoring)

Definitions: Off-shoring Decision Key Factors/Drivers:
Offshoring : the relocation of a 1. Labour costs (73%) - Wage rates lower in Eastern Europe
business process or capacity from a and Far East.
home country to another 2.…

Page 4

Preview of page 4
2. Goods with high value to weight ratio - as long distance transport economically viable, e.g:
textiles, clothing
leather, furniture
jewellery, toys
But would not be appropriate for firms such as:
Aerospace, defence - due to low volume, high-tech, security.
Some building products - due to small amount of labour.…

Page 5

Preview of page 5
Bullet Point 4: Factors affecting UK location decisions by manufacturing businesses (Factors impacting
Re-shoring)

Definitions: Re-shoring Decision Key Factors/Drivers:
Offshoring : the relocation of a May 2014: IMechE /BDO survey found following reasons as to
business process or capacity from a why manufacturing businesses want to re-shore to the UK:…

Page 6

Preview of page 6
Food industry Luxury chocolate brand Hotel Chocolat chose to Reshore in order
Hotel Chocolat to protect their vision as well as to keep ideas in-house


Key Evaluation points and depends upon factors:
Reshoring to the UK will depend on:
Wages & other labour costs (depends on degree of labour /…

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all resources »