Business locations 2

Why do businesses locate where they do?

Re-cap

Size and scale of different businesses

Important factors…

Costs and Benefits

Task 1 (Braehead shopping centre)

Work with the person next to you (Pairs)

Answer the questions attached on the sheet provided

DIAGRAM

Distance to the market Businesses need to locate close to their

markets (Shops) Perishable goods need to be close to their

markets

Availability of raw materials If raw materials are bulky or expressive then

businesses move to them rather than bring them to the business

Health and Safety Some businesses need to locate away from

centres of population (Nuclear power stations)

Regional factors Locating in an area with similar industries

can be an advantage. Local facilities such as schools and leisure centres can also be considered when deciding on an appropriate location

Government Incentives offered by government agencies

can influence a businesses location decision Local, central and EU government grants

Infrastructure This is a term given to all the other facilities

in an area which can influence location of industry

Road, rail & air links Utilities, services and communication links

Transport costs Distance to market and type of product to be

transported affect cost

Availability of land and labour Suitable premises and workforce

Task 2

Work Individually

Answer the questions on the sheet provided

Summary:Businesses at all levels have many things to consider when choosing a location for their business

Homework

10-15m

To be handed in next Tuesday