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Location by Niamh Kenny

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Inveralmond chs

on 20 September 2012

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Transcript of Location by Niamh Kenny

by Niamh Kenny Location Factors influencing the loation of businesses Nearness to markets for selling products and services Proximity to good infrastructure such as roads and railways
to enable customers to come in, and/or allow easy transport of
products costs of land, premises, etc. on which to build shops and/or factories car parking facilities for workers and/or customers Nearness to raw materials, e.g. fishing fl;eets in Scotland are mostly located north and west where the best fish stocks are found Availability of labour Costs of labour: a recent trend has been to outsource some operations (like call centres) to countries where wages are cheaper than in the UK, e.g. India consider the following example: where will this owner open his shop? sensible places: Nearness to markets - where many customers live and/or go shopping, e.g. in a town or city Away from competition - in a part of town where there are few (if any) pet shops, but where there will be demand Reasonable costs - in a part of town where costs of land, premises and taxes are not too high Near to good infrastructure - main road and rail links nearby will help customers and suppliers to get there Car parking - nearby car parking would also be helpful Unwise places: Remote ares - pet owners are unlikely to travel far for a small shop Very near competition - in a road with five similar shops A very expensive part of town - where costs are likely to be higher than profits Far from good infrastructure - if access is difficult, customers are unlikely to come in large numbers. Also, if suppliers find access difficult, their prices will become higher! Infrastructure Infrastructure is the system of structure s and facilities which make business activity easier. Examples include : roads; railways; air travel facilities, e.g. airports; schools; colleges for training future staff; and hospitals Roads and other travel facilities are important because: They allow products and materials into the business effectively They allow products out of business easily They provide easy access for customers
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