what are the 7 factors affecting choice of location?
-where the customer is located
-cost and availability of suitable premises
-parking availiability near the location
-infrastructure (are there roads or rail links for your customer and suppliers?)
-government incetives(is there a grant available to set up in a particular location?)
-availiability of employees in the location
-is there lots of competiton nearby?
how can where the customer is located have an impact on choice of location?
this can have an impact as if there are no possible customers in the located area the business wont make many sales and could thrive in a different location with better customers w
how can cost and availibility of suitable premises have an impact on choice of location?
this can have an impact because if one location is a lot more expensive compared to another premises the business is more likely to go with the cheaper premises
how can parking availibilty near the location impact the choice of location?
this can have an impact because if there is no parking availibility for customers they arent going to be able to access your business to buy your product or service.
how can infrastructure have an impact on choice of location?
if there are no road links or roads that connect to your business not just customers but suppliers also wont be able to access your business to deliver raw materials
how can government incentives affect choice of location?
if government incentives are being given as an option for choice of location a business is more likely to set their business on a premises that they are being paid to develop their business on,this money could help them to build there business
how can availibilty of employees in the local area affect choice of location?
if there arent a lot of employees availiable in the area of your business this will become a problem as the business wont have enough employees to help run it
how can competiton nearby affect choice of location?
if there is competion nearby this can affect the business in positive and negative ways.the business could either egt greater sales than their competitor or there salevs could drop as customers prefer your competitors business
what are the 4 methods of distrubution?
air
road
sea
rail
what are the advantages of air?
-products transported globally more quickly than other methods
-large amounts of small products can be transported
what are the disadvantages of air?
-most expensive method
-fluctuating fuel costs
-road still needed once goods arrive at airport
what are the advantages of road?
-door-to-door service
-cheaper than rail or air transport
-delivery can take place at any time in the day
what are the disadvantages of road?
-slower method of distrubution compared to rail and air
-can be difficult to carry large,bulky goods
-not envirmentally friendly and leads to increases pollution
what are the advantages of rail?
-large bulky goods can be transported around the country
-it is quicker to transport goods rather than by road or sea
-reduces the carbon footprint
what are the disadvantages of rail?
-road is still needed once goods arrive at the station
what are advantages of sea?
-large bulky items can be transported across the world
-cheaper than rail and air transport for long distances
what are the disadvnategs of sea?
-can take weeks/months to transport goods
-requires additional transport at the end of the journey eg road
do all the methods have an enviromental impact?
yes