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Location Toni Ronaldson

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Inveralmond chs

on 20 September 2012

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Transcript of Location Toni Ronaldson

Location Why do businesses locate where they do? Factors influencing the location of businesses The following factors can influence the location 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 out Cost 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 fleets 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 the UK, e.g. India Consider the following example. Where will the 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 the 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
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