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Businesses can choose where to locate. Choice of location is critical and could be a major factor in if the business is successful.

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Businesses can choose where to locate. Choice of location is critical and could be a major factor in if the business is successful. Factors influencing location Every business will locate where they think they will be successful. Businesses need to remember that they need: * Staff to work there * Raw materials to produce finished products * Customers * To keep their costs as low as possible Factors affecting location One of the first decisions any owner of a business has to make is where they will locate their business in order for it to be successful. In order to do this, they have to assess the costs carefully. The best location would be the one where costs are cheaper. The owner of the business has to look at the benefits of location to a particular place and the help that might be available to them from the government. Factors that might be affecting the location of a business can be divided into three main areas: * Costs of location * Benefits of location * Government influence on location Costs and Benefits ...read more.


schools, colleges, call centres and supermarkets. A capital-intensive firm is one where machinery does most of the work e.g. a modern electricity generation plant. The cost of labour is less important in the choice of location. The cost of premises The forces of demand and supply determine the cost of premises. The more demand for premises and the less that are available, the higher the cost. For that reason, premises in city centres are much more expensive than the cost of premises in the suburbs and regions. Businesses that are not dependent upon passing trade will loose their business outside of town and city centres in cheap areas or industrial estates. In Britain, many local boroughs offer businesses pay packages to encourage them to locate in their idea. They may give financial help to large firms for small enterprises. Specialist rental companies will also offer good pay packages to allow businesses to locate easily in special workspace sites, office complexes or retail centres. ...read more.


McDonalds, KFC, Burger King etc. All these restaurants compete with each other but also rely on each other. Though some businesses rely on their competitors, it is better when they are far apart in order to be successful, for example, theme parks. Relocating to a different area where there is less competition benefits a business because the chance of being successful increases. Nearness to customers Being close to customers is important. That is the reason why most companies are located in the south east of Britain, which is the largest consumer market in the country. Nearness to customers is not very important in industry if transport costs are cheap and customers are spread all over the country. Being near to customers is important where smaller industrial companies service the needs of larger organisations in a particular trade. History & Tradition The reasons for location in a particular place may be the history and tradition of the area. It also may be because a particular entrepreneur liked the area. It could also be for geographic conditions, including climate and proximity. Some firms prefer to remain in the same location because they have built up associations and supportive links. ...read more.

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