"Choose a vacant site or business premises in the local area. What type of business would you recommend to be opened there and why?"

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Jonathan Turner

Business Studies Coursework

“Choose a vacant site or business premises in the local area. What type of business would you recommend to be opened there and why?”

Aim

My aim is to locate a vacant site and then suggest, based on my research, which type of business I feel would be most effective on this site.

Objectives

  • Find a suitable location and take photographs.
  • Suggest which business I feel would be most effective if located there.
  • Construct a map of the chosen site.
  • Design a questionnaire.
  • Administer the questionnaire to the general public, in order to gain insight into their views and preferences regarding the site.
  • Record the results of my questionnaire.
  • Construct a graph of my results.
  • Analyse the results collected from my research in order to gain conclusions.
  • Explain my conclusion.
  • Construct a bibliography.

Researching the factors affecting the location of my chosen business

Shoppers

A major factor in whether a business locates in a certain place is the amount of shoppers the area attracts. For example, a retailing business is not going to succeed if it locates in an area that is not visited regularly by shoppers. The type of shopper that the area attracts can also affect a business’ location plans. If a retailer sells expensive goods then it is pointless for that business to locate in an area with generally low incomes, as they will not receive as much custom as they could if they were located in an area of high incomes. Companies may also look for high tourism in an area before deciding to locate their business there.

Nearby Shops

Obviously, locating near to shops or businesses that are visited regularly is a plus point for a business as it generally guarantees a certain level of custom from passers-by. However, at the same time, businesses may not want to locate directly near to their competitors as this could have two possible outcomes: -

  • It could lose customers for the business. A possible example of this is that the customer sees a similar item in a competitors’ shop and decides to purchase this instead of going to the shop that is located nearby.

  • A more positive situation is possible in the way that the more shops the area has, the more customers that it attracts, as there is more choice. This, in itself, will increase business, whereas if the shop was on it’s own then it may not attract as many potential customers as there will only be limited choice of goods.

Customer Parking/Goods  

As many of the business’ potential customers will travel via car, the ability to easily park their vehicle is important. The more convenient this parking is, the more customers will be attracted to the area and therefore there may be an increase in sales figures. A lack of convenient parking facilities may put people off visiting the area.

Availability of suitable vacant premises

If there isn’t a suitable or vacant premise in the area, a business may not be able to locate in the place that it wishes. Good, thriving sites in the centre of regularly visited shopping areas will be in short supply, and, if available, very expensive.

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Rent/taxes

If a retail area is popular then there will obviously be a high demand for sites in this area and therefore, the cost of renting these sites will be higher. If the area is less popular, for example, on the edge of town, the demand and, consequently, the rents, will be lower. If the government imposes taxes on the premises, the more popular sites will likewise also attract higher taxes.

Information on my Chosen Site

My chosen site is the former site of Bryan Donkin Co. Ltd, an engineering business that, among other things, ...

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