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GCSE Business- Location&Relocation

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Introduction

´╗┐Business Re-location Employment Companies often relocate to a place where the cost of labor is cheaper. This is especially true of companies that have a lot of relatively low-skilled jobs. Certain companies may wish to relocate to an area where there is a higher talent pool of workers. To lower operating costs. While the need for more space may be the No. 1 reason, right behind it is the fact that high operating costs have made a company or plant uncompetitive. Sometimes it?s the cost of labor: average salaries, benefits, workers comp and unemployment insurance costs, etc. Or it could be the onerous environmental regulations, or high taxes. To eliminate specific labor-related situations. ...read more.

Middle

2. The competition maybe too high and the business is losing marketshare, then the company might decide to relocate somewhere else to save their business Costs 1. Cost of labour too high 2. Cost of rent/location too high 3. Cost of transport and deliveries too high Some companies move to save costs on real estate or other costs such as hydro. Some move because of logistical reasons like they want to be closer to their suppliers to save on transportation costs. Some might move to a different country because they believe the government regulations there are more favourable to their particular business. I.e. the tax rate might be lower, the environmental laws may be more lax, or the worker?s rights may not be so strong ?Cost is generally the main factor for relocation. ...read more.

Conclusion

The business may have found a better profitable location and might decide to move there to increase profits Enlarge-Expand 1. Business growth: the business may have grown beyond its capacity in its current location. Relocating may be the answer. There may also be significant market growth in another area that had yet to experience a boom when the business was originally set up. 2. To acquire more room. A reason a company will move to another facility is because their current facility no longer has enough space for them to do the things they need to do. One of two factors comes into play: either the surrounding property does not have enough open space to accommodate a physical expansion of the building, or management has determined that such a facility expansion on the existing site would not be cost effective. ...read more.

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