Labour
When deciding on a location Lloyds must know that it will be able to recruit enough employees with the appropriate skills and experience to meet its needs. Different types of business or industry require different types of skills and experience. The availability of a suitable workforce also depends on local employment levels.
Employment levels
Lloyds should locate there business in an area where employment levels are low and there is high unemployment because the business may be able to attract the employees its needs more easily. If Lloyds locates where employment levels are already high it will have to compete with other businesses for the employees it needs, the business may have to offer higher wages and salaries and improved benefits and conditions. Of the people in Newport who were of working age the employment rate was 70.7 per cent during the summer of 2004.
Wage and salary levels
Wages and salaries often form a large part of the expenses of a business. The general level of wages and salaries in an area can therefore be an important factor and influencing the decision where to locate. Locating in an area where the levels of wages and salaries is high can significantly increase the costs of s business, by locating in an area where the levels of wages and salaries is lower a business can keep its employee cost to a minimum.
Proximity to customers and other businesses
When Lloyds is located on the high street of Newport it is easy for customers to get to the bank. When shopping they have easy access to get to the bank and take out more money if they need to.
Historical reasons
Some areas are traditionally associated with a particular type of business or industry. Once an industry becomes established in an area, essential support industries and services will also set up so as an area develops a reputation for a particular industry or type of product, new businesses can benefit by association with the reputation of the area.
Demographic change
Demographic change is change in the size, structure and distribution of the population. This affects the location decisions of the business in several ways. Businesses providing goods and services aimed at young people or health services for the elderly.
Competition
When Lloyds is deciding where to locate they should consider there competition. Lloyds have many competitors but they have to prevent other businesses from forcing them out of the market. A business that can compete successfully can keep there existing customers and attract new ones. Lloyds will have to price there products the same or very similar to the price of there competitors so they don’t lose customers simply because the product is more expensive.
Lloyds when deciding to locate should think about all these reasons so that they don’t fail and stay successful.