Location of an organisation

Reasons

• There are good

reasons why an

organisation is where

it is

• Its not just because

it has to be somewhere!

• There are good

reasons why an

organisation is where

it is

• Its not just because

it has to be somewhere!

Factors to consider:

• Raw materials

• Land

• Transport links

• Workforce

• Energy

• Market

• Government aid (grants)

Raw materials

• These are the things that are needed by organisations to manufacture useful products

• Eg – a brewery needs good water- many are found in Burton on Trent, because the river Trent is a supply of good water

• The marmite factory is also in Burton – because waste yeast from the breweries is their raw material

• These are the things that are needed by organisations to manufacture useful products

• Eg – a brewery needs good water- many are found in Burton on Trent, because the river Trent is a supply of good water

• The marmite factory is also in Burton – because waste yeast from the breweries is their raw material

Land• Land is expensive in the south east

of England• This is why companies often relocate

to the North• (The BBC are relocating from

London to Manchester)

Cheap !

Dear !

Transport Links

• It is good to be near:

• Motorways

• Railway links

• Bus routes

• Seaports/ channel tunnel

• It is good to be near:

• Motorways

• Railway links

• Bus routes

• Seaports/ channel tunnel

Workforce

• The availability of a workforce with the right skills is very important for employers

• employers may have to recruit from abroad if there is not a skilled local workforce – this has happened in the health, construction and education sectors

• This may however, only be a short term solution

• The availability of a workforce with the right skills is very important for employers

• employers may have to recruit from abroad if there is not a skilled local workforce – this has happened in the health, construction and education sectors

• This may however, only be a short term solution

Market

• There needs to be a market for the product or service

• If there are no users of the service, then the organisation may go out of business

• There needs to be a market for the product or service

• If there are no users of the service, then the organisation may go out of business

Energy

• Many organisations involved in making products or providing services require large amounts of energy to work effectively

• They may also need a back up supply in an emergency

• Many organisations involved in making products or providing services require large amounts of energy to work effectively

• They may also need a back up supply in an emergency

Grants

• Governments may provide financial incentives to organisations to attract them to an area

• This could be an area where there used to be heavy industry and there is a skilled workforce who have been made redundant ( e.g. Birmingham – closure of Rover car factory)

• This may help to reduce start up costs and ease recruitment issues

• Governments may provide financial incentives to organisations to attract them to an area

• This could be an area where there used to be heavy industry and there is a skilled workforce who have been made redundant ( e.g. Birmingham – closure of Rover car factory)

• This may help to reduce start up costs and ease recruitment issues

Activities.1. Explain why good transport links are important

for an organisation

2. Explain what is meant by the market for an organisation

3. Explain why an employer may recruit abroad and give reasons why this may only be a short term fix.

4. Explain why organisations may consider relocation and what they must consider if they take this option

5. Why are grants important to organisations?

Effects on the local environment

• Pollution ( chemicals)

• Noise

• Visual

• Traffic