• Created by: EReynolds
  • Created on: 13-06-15 18:29

What is important when choosing location?

Some businesses use natural resources, so they need to be near them.The size and quantity of the site and the availability of infrastructure (power, transport links,etc.)may be as importnat as its location. The size, quanitity and structure of the labour force are also important.

Government help may come in the form of grants, subsidies or lower rates.

1 of 5


External bodies such as the European union may provide benefits that encourage businesses to locate in certin areas. Internstionslly, such benefits may also inclide lower taxation, or laws that make it easier for the business to work in a particular country.

2 of 5

Location factors

For a business supplying idrectly to consumers, location factors include accessibiltiy, local services,rates,rents and the presence of competition.Certain services, such as a local shop, bank, or hairdressers will be located as near to customers as possible.

In other cases, the service will be located at a particular place due to geographical factors (e.g. holiday destinations) or due to the specialist nature of a service (you would not expect a heart surgeon to come to you).

3 of 5

Manufacturing locations

Manufacyuting locations are influenced by factors such as how near production needs to be to raw materials, or to consumers. There will be a certain amount of 'pull' in both directions.

A bulk-decreasing industry will need to be as neae to raw material sources as possible. Oil refining is an example.

4 of 5

Bulk-increasing industry

The manufacture of pottery, however is a bulk-increasing industry- china clay is easily transported but finished goods need to be carefully packaged and are expensive to transport as they have grown in bulk.

Such a business therefore needs to be located near its market.

5 of 5


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all People in business resources »