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LOCATION
All businesses have to decide where to locate their: ,[object Object],[object Object],[object Object],The location which a business selects can affect its  success  or  failure .  A business which locates successfully can achieve: ,[object Object],[object Object],[object Object]
Businesses need to think about the following factors when deciding where to locate: ,[object Object],[object Object],[object Object],A business will fail if it does not address these issues + + Eg – near source of raw materials or specialised work force, availability of specialised workforce; availability of land; distance to market; transport costs and infrastructure; local, national and EU grants, laws and regulations; near to a component business. ,[object Object],[object Object],[object Object],[object Object],+ + + +
Availability of Labour Infrastructure Availability of Capital Government Loans and Grants Distance to Market Component Businesses Factors Influencing Location Health and Safety Source of Raw Material Transport Costs EU Grant Telecommunications Information Costs
Location  costs  might include: Location  benefits  might include: ,[object Object],[object Object],[object Object],[object Object],Eg cost of renting or buying Eg local council charges Eg different parts of the world have different wage rates Eg cost of bringing in raw materials and of delivering goods to customers ,[object Object],Eg some areas contain more people and businesses than others ,[object Object],Eg some areas have lower wage rates than others ,[object Object],Eg some areas charge businesses lower rates ,[object Object],Eg some areas have lower land prices and/or can provide land for future development ,[object Object],Eg some areas offer access to faster or more convenient transport routes/services ,[object Object],Eg the local council or the government may offer companies special grants if they locate in certain areas of the country A business will normally only locate in a particular area if the  benefits outweigh  the  costs
WHERE DOES THE MONEY COME FROM TO FINANCE A BUSINESS? Sources of Finance Long-term (over 10 years) Medium-term (1-10 years) Short-term (up to 1 year) Shares Leasing Overdraft Debentures Hire Purchase Trade Credit Loans Loans Factoring Mortgages Β  Β 
Source of Finance – Business Type Β  Sole Trader Partnership Private Limited Company Public Limited Company Personal Savings     Ordinary shares     Preference Shares     Debentures     Loans     Mortgage     Leasing     Hire Purchase     Overdraft     Trade Credit     Factoring    
The Government can influence where a business locates. CENTRAL GOVERNMENT SUPPORT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
LOCAL GOVERNMENT SUPPORT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The European Union (EU) can also affect where a business locates.
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
GLOBALISATION This has created a  single world wide market place  which is dominated by  multi-national businesses ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
MULTI-NATIONALS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Standard Grade Business Management - Business Location

  • 2.
  • 3.
  • 4. Availability of Labour Infrastructure Availability of Capital Government Loans and Grants Distance to Market Component Businesses Factors Influencing Location Health and Safety Source of Raw Material Transport Costs EU Grant Telecommunications Information Costs
  • 5.
  • 6. WHERE DOES THE MONEY COME FROM TO FINANCE A BUSINESS? Sources of Finance Long-term (over 10 years) Medium-term (1-10 years) Short-term (up to 1 year) Shares Leasing Overdraft Debentures Hire Purchase Trade Credit Loans Loans Factoring Mortgages Β  Β 
  • 7. Source of Finance – Business Type Β  Sole Trader Partnership Private Limited Company Public Limited Company Personal Savings     Ordinary shares     Preference Shares     Debentures     Loans     Mortgage     Leasing     Hire Purchase     Overdraft     Trade Credit     Factoring    
  • 8.
  • 9.
  • 10. The European Union (EU) can also affect where a business locates.
  • 11.
  • 12.
  • 13.
  • 14.