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One of the most important decisions affecting the success of a business organisation is its location. A good location can help make a business successful.

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TASK C - LOCATION AND OWNERSHIP One of the most important decisions affecting the success of a business organisation is its location. A good location can help make a business successful. A location that has the lowest possible costs helps the firm to make the largest possible profit. ? Factories. Manufacturing businesses will be looking for a factory where they can produce their goods ready for sale. ? Offices and shops. Businesses providing services will try to find a suitable shop or office, depending on the type of business. ? Natural resources. Some businesses require land, or other natural resources, as well as buildings. The factors affecting the location of a business are: ? Distance to market Many businesses need to be located close to their market. Service industries such as entertainment and banking also have to locate near their markets to be available for their customers. Many manufacturing industries locate close to their markets, particularly if they produce bulky or fragile items which are expensive to transport. Centres of population tend to attract bulk-increasing industries. These are industries where the output is more expensive to transport than the raw materials. They need to be close to their market in order to minimise transport costs. ? Availability of raw materials Some businesses use a lot of heavy and bulky raw materials in the construction of their products. ...read more.


These documents then have to be approved by the Registrar of the company. The Registrar issues a certificate of Incorporation as evidence that the company is registered. The public limited company then issues a prospectus. This is an advertisement or invitation to the public to buy shares. The issuing of shares then takes place, and the Registrar of the company issues a certificate of Trading. Business can then start, and share process will be quoted on the stock exchange. ? Advantages of a public limited company Forming a public limited company gives several advantages: ? The owners of the business (shareholders) benefit from limited liability. Reducing risk to shareholders makes it easier for the company to raise capital. ? Public limited companies can sell their shares on the stock exchange and this allows them to raise capital to develop new products and purchase new buildings and expand. Asda are manufacturing more of their own brand products and they may be getting their money from the stock exchange, where shareholders buy shares from Asda. ? Public limited companies benefit form continuity. If a shareholder dies, the shares are sold to someone else and the business carries on. For example, if a director of shareholders of Asda dies, another one is directed and the shares of the previous one are sold in the stock exchange. ...read more.


? Suppliers. Jaguar has also chosen the location because there are many small local engineering firms in the area. This makes it easier to transport raw materials to the plant and saves time. ? Labour supply. Jaguar has located the plant near an area where skilled labour is easily available. Birmingham and Coventry are traditional manufacturing areas, so there is a large pool of workers with the right skills available. ? Safety. Jaguar has located their plant away form residential areas. This is important because if the if the residents are annoyed by noise pollution, or air pollution by the Jaguar plant, Jaguar would have move to another location or lose their reputation. The disadvantages of the location are: ? Congestion. The motor highways are congested most of the time and have traffic jams often. This slows down transport of exports and raw materials. ? Lack of space. The location of the Jaguar has little space. If the plant needed to be expanded, it would not be possible because of the amount of space. The workers also have problems parking their cars, as the car park is too small. ? Long way to ports. Most of Jaguar's sales are exports and it is of utmost importance that they have a reliable way of transporting their to the ports. But the plant is in the middle of the country and it is difficult to reach the ports because of the long distance. Mustafa Bhalloo 10.3 ...read more.

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