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Choosing a location for a business is important as the location chosen can affect a businesses performance.

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Introduction

Location Choosing a location for a business is important as the location chosen can affect a businesses performance. When choosing a location it is important to take in mind the kind of business you are looking to locate. The considerations of a large retail outlet are different to those of a large factory, e.g. a large supermarket is ideally placed in the centre of a built up area or on the edge of a town or city provided the site has good transport links. Space When considering a site for location it is important to ensure especially in a built-up area whether there is enough space, i.e. a supermarket would loose money if the site available to it could not provide ample parking for customers. Or enough space to display a full range of goods. Competition Area for possible locations need to be researched in depth to ensure that the competition will not effect the profitability of the business e.g. a small corner grocery shop would not do well right next to a big supermarket. However a bank or financial service is likely to benefit from having a presence in London as London is considered the banking capital of the world. Price Leasehold or freehold sites can protect business from high increases in operating costs. ...read more.

Middle

E.g. corner shops are often built in residential areas. Dentists and opticians need to be close to their customer base. Where as banks, solicitors and estate agents are generally located in busy high streets. Service industries often travel to their customers and major manufacturers who supply goods over a wide area (nationally or internationally) can be located outside their customer base. Easy jet Easy Jet was founded in November 1995, it is based at Luton/ London airport, this is a good location, as Luton/London has developed into one of the countries major airports, it has easy access via rail, motorway, and public transport. The airline has grown from a Luton base offering two routes from Luton to Glasgow and Edinburgh, served by two Boeing 737 aircraft, to one that offers 111 routes from 38 European airports, operating 67 aircraft (April 2003). The phenomenal growth of easyJet was boosted by its merger with Go-fly in August 2002, making the combined company Europe's Number 1 low cost airline. With the shutdown of Vauxhall motors in Luton it has also given rise to a high employee base. The airline is based at easyLand, a bright orange building adjacent to the main taxiway at Luton Airport. In an industry where corporate HQs are generally considered to be the ultimate status symbol, it is the very embodiment of the easyJet low-cost ethos. ...read more.

Conclusion

In the late Victorian period competition from large national multiple retailers such as Lipton's posed a serious challenge to small regional chains like Sainsburys. John James found it necessary to step up his rate of expansion so that he could buy goods as competitively as these companies. Between 1890 and 1900 the number of Sainsburys branches trebled from 16 to 48. John James also opened a new depot at Black friars, southeast London, which was close to the wholesale markets and the London docks. This shows how Sainsburys have expanded over a period of time. By the end of Sainsbury's 125th year, the company had 355 stores in a trading area stretching from Truro to Edinburgh. The company's most easterly store, an off-licence at Calais, opened in April 1994 and soon developed a local clientele as well as earning the accolade of Cross-Channel supermarket of the year. In recent years, the group has expanded its activities in the USA, where it acquired the New England-based Shaw's Supermarkets Ltd in 1987 and diversified into banking, with the establishment in 1997 of Sainsbury's Bank. In 1995 Sainsbury's was the first British supermarket company to offer goods for sale on the Internet. The Sainsbury group today is one of the world's leading retailers, playing a part in the lives of 15 million customers a week and employing over 169,000 people as at June 2001. Part A. Location October 03 Business studies Mr.Laidlaw Jemma Murphy ...read more.

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