Tesco’s is located around the Town Hall of Brixton:
The area is well developed, so there would be no problem with the area which is well served by transport links such as train and bus routes. This is vital because the customers need this to carry their shopping from tesco’s back home. This is also good for the company because it means that customers, employees and suppliers can get to the business easily. The business is also close to a large residential area, which means that the firm would be able to find more customers and employees easily. The biggest advantage of this location to the business is its closeness to transport links and customers. This is good because it means that if business is not near good transport links, the workers would not be able to get to work quickly and easily. It would also take long to get supplies and would cost a lot of money. If the business is not near customers it would mean the business would get no customers and would be in a huge loss.
This is also the population of the people who live in Streatham this includes the number of males and females, the people who are employed and unemployed. By this information I can see the number of people who will shop at tesco and also the people who work around tesco. The population of Streatham is large so tesco’s will be making a huge sum of money. A business needing a highly skilled workforce need to be in an area which is in relation with industry, or one with a local training facilities which would provide the skills needed. A business looking for mainly unskilled, cheap labour looks for an area with a plentiful supply.
Cost of land or premises
The availability and cost of land will vary from region to region. Factors which affect the price of land will include such things as proximity to good road and rail networks, nearness to cities, towns or ports, or the general demand for land in the area. Offices or Headquarters of organisation which may not need so much floor space are prepared to pay the higher prices which town or city centre premises attract. If the area is popular as a location for both housing and industry, land prices will be considerably higher. For example these two shops are located in the same place Lewisham.
LEWISHAM HIGH STREET, SE13
The property is located on the very busy Lewisham High Street.
RENT £25,000 PA EX
LEE HIGH ROAD, LEWISHAM, SE13
RENT £15,000 PA EX
These two shops are about the same size but they cost more than each other. The first shop’s rent is £25,000 PA EX and the seconds shop’s rent is £15,000 PA EX this is different because the first shop is located on the high street this is near a shopping centre this means there will be more customers. The second shop is located on lee high road this is a place were people live and there are not lots of shops around so this means less customers.
Raw materials and the Market Firms dealing with perishable goods, such as canning and freezing firms, need to be near to where the goods are produced, in order to save money. Businesses whose process is bulk- reducing, e.g. a brick makers of sawmill should also try to locate near to the source of materials, so again to have lower transport costs. Bulk-increasing businesses such as car manufactures do the opposite and try to be close to the market. E.g. tesco’s sells perishable goods with sell by dates.
Transport links and Competitions The biggest advantage of this location to the business is its closeness to transport links and customers. This is good because it means that if business is not near good transport links, the workers would not be able to get to work quickly and easily. It would also take long to get supplies and would cost a lot of money. If the business is not near customers it would mean the business would get no customers and would be in a huge loss. Lewisham high street is busy most of the time with traffic and there are many shops there to compete with. A business like tesco will be competing with other businesses like Sainsbury’s and Asda so they will locate where there are more customers so they gain more. A better type of location that a company could move is to where there are fewer shops. It is mainly because of shops that are the cause of the traffic. If they move to a place with fewer shops it would help by reducing the competition and at the same time reducing traffic. Tesco has a lot of warehouses all over London and country so it is not hard to get the supplies but the traffic might be a problem. If tesco wants their businesses to be successful they would locate it near to where their customers and suppliers can link them, for example, tesco in Brixton is located near the Brixton train station and they also it is located opposite a bus stop, Tesco has a car park and it includes a disabled car park and they also have a cycle stand all this are useful because when the customers come for shopping they don’t have to travel far away with their shopping bags. On the other hand Mc Donald’s is located opposite the bus top and it’s not to far from the Lewisham train station. I have found out that many factors affect the location of the business. Many of these factors have changed over recent years due to excellent transport and communications. The main things that affect the location of a business are market, raw materials, other firms, transport, labour, communications, and climate and government policies. Each one of these factors must be carefully assessed and agreed on before a firm move site or establish a new site.
History and Tradition
The reasons for the location of a particular industry may be a mixture of what is essential, history and tradition this is because some entrepreneur liked the area in other cases the original reasons for a business locating in a place no longer apply but the businesses remain where it is. The conditions for cultivating plants can now be stimulated in green houses anywhere in the country. Some prefer to remain in the same location because they have built up association and supportive links. Local colleges may run industrial courses relating to theses organisations. There may be a local trade association which benefits many of the owners. In such cases, there is little impetus for a business to relocate to be on its own somewhere else. In other cases relocation becomes essential. For example Cornish pasties are originally made from Cornwall so people that buy Cornish pasties will like the fact that it is made from Cornwall and they wouldn’t want to buy a Cornish pasties that is not made from Cornwall.
Financial aid from the government
This is given to some business to locate in some areas. The European Union and the government are concerned about such inequalities. They would like all regions to be equally prosperous. For sometime in the UK there have been assisted areas. There are areas of Britain where regional aid may be given under European community law. Regional Selective Assistance {RSA} is the main form of such aid in Britain. This is a discretionary grant awarded to support a project which will stimulate employment opportunities, increase regional competitiveness and improve prosperity. The McDonald’s in Lewisham does not need a financial aid from the government. And the tesco’s located in Brixton will need financial aid from the government because it is not located near an area were people are for example it is not located around shopping centres.