• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Factors that may influence a business in its decision upon a location for its operations.

Extracts from this document...


Factors that may influence a business in its decision upon a location for its operations There are many factors a business will have to consider. On the next page is a list of some of the major and influential factors. There are many factors to consider when locating a new business. These factors all play an important part in the successful sale of a product or service. For some firms only a few factors will be important. Other firms may need to consider and balance a complex mixture of location factors. One very important factor to consider however is the infrastructure of business site: 1) The business needs very good transport systems for the site. The most common forms of transport are by road, by rail, by river, and by canal. For a company that receives a lot of raw materials, proximity to a port would also be helpful. 2) The business needs good communication systems such telephone systems, fax, e-mail, etc. 3) Production is important to a business so a firm needs to know whether there are secondary firms in the area to help deal with waste disposal, repair machinery and to transport the finished good. ...read more.


Prevailing wind is very important as the wind direction can take pollutants away from areas that are densely populated. Visibility Businesses need to locate somewhere people can see it. This will also increase the chances of attracting more customers, therefore increasing sale revenue. It will also help to widen the appeal to their secondary target market. A prime location is at the corner as it has bigger frontage. Competition Businesses also need to check the amount/intensity of competition in and near their location. It will not be wise for a small start-up to locate near big, established businesses that sell the same or similar product. However, this will allow businesses to benefit from economies of scale. Electrical companies usually do this. It gives the business an access to a major customer base and can reduce the cost of deliveries. Where are customers located? This is another important factor to take into consideration. If the main customer base is located hundreds of miles away from the location of operations, heavy transportation costs will be incurred. I believe that all the reasons stated above are very influential when it comes to a business deciding where it will locate its base of operations. ...read more.


transportation 3.64 High worker productivity 3.59 Low taxes 3.50 Tax exemptions 3.30 Skilled labor availability 3.29 Tax credits 3.28 Community acceptance 3.26 Favorable regulatory environment 3.25 Low union profile 3.24 Unskilled labor availability 2.90 State government support 2.81 Air transportation 2.76 Long-term financing 2.67 Waste disposal facilities 2.64 Rail transportation 2.62 Worker training programs 2.59 Energy/energy sources 2.53 Secondary education facilities in area 2.53 Ample fresh water availability 2.43 Recreational facilities in area 2.40 Raw materials availability 2.38 Colleges & universities in the area 2.34 Cultural amenities in the area 2.34 Sea transportation 2.16 Source: Transportation & Distribution subscriber survey entitled "Selecting Sites: Warehouse, Distribution Center, Plant," project manager: Traci J. Jackson. Penton Publishing, Cleveland, Ohio, 1994-95. As is shown above, numerous factors are taken into consideration when the location of a business is considered. It is always important to recognize the weaknesses and the strengths of any given location in order to be able to make a correct and informed decision. The most important factor that influenced location was by far "Geographical Location". This means that businesses were basing their decisions on where to move on the terrain of certain areas and how accessible those areas were. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level ICT in Business essays

  1. Marked by a teacher

    Unit 4 Business Studies

    4 star(s)

    The constraints which are on my new business is mainly: 1) The budget which is set for me to use to create the new website, because for it to be successful as an online presence I have to have a high budget figure which allows me to create flash animations

  2. Factors that affect the location of a business.

    In the past thirty years the transport communications will have changed. Larger ships will give the ability to transport more produce to its customers and the road network will have increased. The climate will have changed slightly, for the worst i.e.

  1. A Sharp recession sends firms into receivership while some emerge stronger than ever. Discuss ...

    All this means more money being spent on long term liabilities and a decrease in profitability as the business is spending more while receiving a cut in output and sales falling. The demand for all sorts of products falls during a recession making the recession sharper.

  2. Develop my understanding regarding the production of accounts and their use for business decision ...

    Bank Loans. Overdrafts, trade credit and factoring are different ways in which a business can increase the cash and working capital flowing round the business. However, they are not suitable ways of raising money to finance the replacement of, say, �200,000 of outdated machinery.

  1. Business Operations

    recliner in chair. Information - This when Southwest Airlines collect information from consumers in order to provide the service, these include: - * Full customer name * Customer address, email address and a contact number * Customer payment details * The flight that the customer wants to be on and

  2. Business Location.

    Below is a map of where PSL workplace is situated: GET MAP Richer Sounds Richer sounds has 42 stores. The first stores location was chosen because Julian Richer lived in the area and heard about a small shop which was coming out onto the market.

  1. For this piece of coursework I am going to see whether the opening of ...

    The ability of listening to the latest music via headphones while my prospective customers browse which is regularly updated and is in sparkling MP3 form will assist in generating sales for the music section of the Ve store. Web Cams Each of my Ve store P.C's could have a web

  2. In this coursework I need to produce a detailed business report on one medium-sized ...

    Other retailers soon copied Tesco. Sir Jack was one of the leaders in persuading Parliament to abolish Resale Price Maintenance in 1964. After this, Tesco continued to offer trading stamps until 1977. Apart from opening its own new stores, Tesco bought existing chains of stores.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work