Tuesday 10 March 2015

Part 2 - A description of the current location of the business

Good morning year 10 and welcome back to Business

Having completed the introduction as a draft / practice we are now in a position where we can describe the current location of the business.  To do this we need to think about:

  1. Raw materials.  Make the point that this is a service sector business and as a result will need regular supplies delivered.  Can raw materials be delivered easily and effectively.
  2. Labour - The location is in an area of low unemployment and although the business does not need masses of staff it will need to pay high wages to compete with the competition.
  3. Transport - can customers get to you easily? Are there adequate places to park? Is parking free or expensive. Is the business on a well establish public transport network?
  4. Communication - does the business benefit from internet and high speed broadband connections? If not how can this be a disadvantage to it ?
  5. Location of the market - unlike manufactures who do not need to be near their customers a service sector business does.  Is your chosen business located where people can easily get to them. Who are their customers and are there enough of them?
  6. Operating costs - A business will pay more to be in an area where land is scarce and property rents and prices are high as there will be many organisations looking to compete for that location and don't forget with planning permissions a business owner can apply for change of use for a property. What are the rent and rates for your chosen business in its current location as this will have a massive impact on the profits
  7. Future opportunities - A business may locate to a place in anticipation of future developments and the thought of more customers in the future.  Oaks were in the covered market but knowing what development is heading for the Westgate Shopping precinct they decided to move to St Ebbes and be closer to the action two years before the changes take place!

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