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Location Of An Organisation
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Location Of An Organisation


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  • 1. Location of an organisation
  • 2. Reasons
    • There are good
    • reasons why an
    • organisation is where
    • it is
    • Its not just because
    • it has to be somewhere!
  • 3. Factors to consider:
    • Raw materials
    • Land
    • Transport links
    • Workforce
    • Energy
    • Market
    • Government aid (grants)
  • 4. 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
  • 5. 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 !
  • 6. Transport Links
    • It is good to be near:
    • Motorways
    • Railway links
    • Bus routes
    • Seaports/ channel tunnel
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. Activities .
    • Explain why good transport links are important for an organisation
    • Explain what is meant by the market for an organisation
    • Explain why an employer may recruit abroad and give reasons why this may only be a short term fix.
    • Explain why organisations may consider relocation and what they must consider if they take this option
    • Why are grants important to organisations?
  • 12. Effects on the local environment
    • Pollution ( chemicals)
    • Noise
    • Visual
    • Traffic