Podcast
Questions and Answers
Retail companies that operate exclusively online are just as concerned with locating in high-traffic, visible areas as brick-and-mortar stores.
Retail companies that operate exclusively online are just as concerned with locating in high-traffic, visible areas as brick-and-mortar stores.
False (B)
Service companies, such as train operators, benefit from being located near their customers.
Service companies, such as train operators, benefit from being located near their customers.
True (A)
Manufacturing companies always prioritize proximity to customers over lower rent costs, regardless of the nature of their products or raw materials.
Manufacturing companies always prioritize proximity to customers over lower rent costs, regardless of the nature of their products or raw materials.
False (B)
Infrastructure, including reliable phone lines and efficient gas pipes, are not usually considered an important factor for business locations.
Infrastructure, including reliable phone lines and efficient gas pipes, are not usually considered an important factor for business locations.
Efficient transport networks benefit businesses by enabling employees to commute easily and facilitating the movement of goods.
Efficient transport networks benefit businesses by enabling employees to commute easily and facilitating the movement of goods.
For a delivery-only takeaway, a location with cheap rent and good transport links is generally more advantageous than a high-street location.
For a delivery-only takeaway, a location with cheap rent and good transport links is generally more advantageous than a high-street location.
If a manufacturing company's product is bulk-reducing, it would benefit by being closer to its raw materials
If a manufacturing company's product is bulk-reducing, it would benefit by being closer to its raw materials
The location of a business has just as significant an impact on a shop or restaurant as it does on a web design company.
The location of a business has just as significant an impact on a shop or restaurant as it does on a web design company.
Contact centers and train operators need to be located near their customers.
Contact centers and train operators need to be located near their customers.
Large manufacturing companies make business location decisions based on costs, whilst small businesses make business location decisions based on potential customers.
Large manufacturing companies make business location decisions based on costs, whilst small businesses make business location decisions based on potential customers.
Businesses rarely consider costs when deciding on location because costs are usually very similar in each region
Businesses rarely consider costs when deciding on location because costs are usually very similar in each region
Infrastructure refers to factors such as customer service, staff training, and marketing strategies that support business activities.
Infrastructure refers to factors such as customer service, staff training, and marketing strategies that support business activities.
A web design company's success depends heavily on its physical location and the amount of foot traffic it attracts.
A web design company's success depends heavily on its physical location and the amount of foot traffic it attracts.
For manufacturing companies, cheaper rent is always the most important factor when deciding on location
For manufacturing companies, cheaper rent is always the most important factor when deciding on location
Relocating a retail business costs $100, so it is always better to move to a location closer to potential customers
Relocating a retail business costs $100, so it is always better to move to a location closer to potential customers
The ease with which staff can get to and from work does not influence a business location.
The ease with which staff can get to and from work does not influence a business location.
Gas Pipes form a part of a country's infrastructure.
Gas Pipes form a part of a country's infrastructure.
Train operators benefit from being located near customers.
Train operators benefit from being located near customers.
Retail businesses benefit from being located near customers
Retail businesses benefit from being located near customers
Infrastructure impacts delivery times
Infrastructure impacts delivery times
Flashcards
Retail Location Strategy
Retail Location Strategy
Retail companies aim to be near customers in busy areas, except for online-only retailers.
Service Company Location
Service Company Location
Some service companies need to be near customers (e.g., train, taxis), while others can be anywhere (e.g., call centers, web designers).
Manufacturing Location Factors
Manufacturing Location Factors
Manufacturing companies prioritize lower rent costs over customer proximity; location decisions are based on cost.
Bulk-Gaining product location
Bulk-Gaining product location
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Bulk-Reducing product location
Bulk-Reducing product location
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What is infrastructure?
What is infrastructure?
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Importance of Transport Networks
Importance of Transport Networks
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Location Impact by Business Type
Location Impact by Business Type
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Study Notes
- Retail companies aim to be as close to customers as possible, selling products directly, typically locating in busy areas near other retail outlets.
- Internet-based retail businesses are an exception to needing prime locations.
- Service companies' location needs vary; some, like train operators and taxi companies, must be near customers.
- Other service companies, such as contact centers and web designers, can be located anywhere.
- Manufacturing companies prioritize cheaper rent over customer proximity.
- Many manufacturers transport products nationally or internationally.
- Business location for manufacturing companies is typically decided by costs, especially for small businesses.
- Bulk-gaining product manufacturers may locate near markets, depending on costs.
- Bulk-reducing product manufacturers usually benefit from locating closer to raw materials.
- Infrastructure includes facilities supporting daily economic activities, such as roads, phone lines, and gas pipes.
- An efficient transport network is important for staff, supply chains, and product distribution.
- Location importance varies by business type, with shops and restaurants needing convenient locations.
- Delivery-only businesses might prefer cheaper premises with good transport links.
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