Location Assessment of a Business

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Location Assessment of a Business

The success or failure of a business frequently depends on its

location. The right location will increase the chance of a business

succeeding. The wrong location could increase the chances of a

business failing. The main factors that influence the location of a

business are LABOUR, LAND, RAW MATERIALS AND THE MARKET,

INFRASTUCTURE, SERVICES and some OTHER INFLUENCES.

LABOUR

A business needing a highly skilled workforce need to be in an area

which is in relation with industry, or one with a local training

facilities which would provide the skills needed. A business looking

for mainly unskilled, cheap labour looks for an area with a plentiful

supply.

LAND

The amount and cost of land clearly depends on the business's choice

of location, but so do things such as the nature of land. Businesses

like oil refilling and superstores need large, flat sites, which can

bear heavy loads and have a lot of open space. A site in bad condition

needs more money spent on it and local planning restriction must also

be considered. So either way it is nearly the same amount spent.

RAW MATERIALS AND THE MARKET

Firms dealing with perishable goods, such as canning and freezing

firms, need to be near to where the goods are produced, in order to

save money. Businesses whose process is bulk- reducing, e.g. a brick

makers or a sawmill should also try to locate near to the source of

materials, so again to have lower transport cots. Bulk-increasing

businesses such as car manufactures do the opposite and try to be

close to the market.

INFRASTRUCTURE AND SERVICES

All businesses need good sources of ...

... middle of paper ...

... businesses are close to various forms of transport links such as

roads, tube stations and bus stations. Errol's customers can leave

their cars and use one of these forms of transport to get to the place

they wish. Sainsbury's employees and customers could get to work or

shop by using one of these forms of transport. So the transport system

is good for both the businesses.

I have found out that many factors affect the location of the

business. Many of these factors have changed over recent years due to

excellent transport and communications. The main things that affect

the location of a business are market, raw materials, other firms,

transport, labour, communications, climate and government policies.

Each one of these factors must be carefully assessed and agreed on

before a firm move site or establish a new site.

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