Business studies

• Ways to grow a business
• Internal (organic) growth - the business grows by hiring more staff and equipment to increase its output.
• External growth - where a business merges with or takes over another organisation. Combining two firms increases the scale of operation.
• Franchising - where a business leases its idea to franchisees. This allows new branches to open across the country and internationally.

business location is important because it can directly affect costs, sales and image.

costs

The  amount paid to buy or rent premises varies according to location

e.g. normanton derby would be cheaper than the Intu Derby.

the cost of the premise will directly effect the profit.

Sales

location will determine the number of customers. it will influence the type of customer.

E.g. a boots store in the city centre will have a far higher footfall than one in a village.

Image

for some products location can impact on their image, for some businesses it can be no importance.

E.g. amazon has no customers visiting where as a designer shop would be an upsale part of town.