GCSE Business Studies Unit 1 Starting a Business

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Presentation transcript:

GCSE Business Studies Unit 1 Starting a Business Business Location

Images © thinkstockphotos.co.uk Learning Outcomes Explain the following factors that influence the location of businesses locally, nationally and internationally: Proximity to raw materials Proximity to market Availability and price of land Governmental influences Communication Transport infrastructure and parking Images © thinkstockphotos.co.uk

Factors affecting Location Availability of raw materials Market Close to customers Close to suppliers Cost Competitors Price of land/premises Cost of Labour Government Influence/assistance Communication Good phone/internet signal Infrastructure/Parking Transport links Type/size of business Images © thinkstockphotos.co.uk

Images © thinkstockphotos.co.uk Think of a retail shop in your local town. Write down the name of the shop. Does this shop exist anywhere else (in a different town/country?) List the advantages of the shop being situated in its current location. List all the disadvantages of the shops current location. Spend 15 minutes on this activity Images © thinkstockphotos.co.uk

Factors to consider when choosing a business location Raw Materials – Raw materials are used in the primary production of goods eg. Wood, grain, minerals or metal from a mine. Infrastructure/Parking – transport network including rail, road and ports available and utility systems (wiring and piping) Government Influences – grants, loans and possibly tax breaks Cost – Price of land to buy/rent and cost of labour Images © thinkstockphotos.co.uk

Factors to consider when choosing a business location Communication – Internet and phone signal Market – Close to suppliers and customers. Not too close to competitors Copy the table below: In groups: (20 minutes) Identify the advantages and disadvantages of a business locating overseas. Advantages Disadvantages Images © thinkstockphotos.co.uk

Exam Question and Check List Past paper 2015 Unit 1 - Q3 – spend approx. 8-10 minutes completing this question. Learning Check – Do you know . . . The factors that influence the location of businesses locally, nationally and internationally? Images © thinkstockphotos.co.uk