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LOCATION DECISIONS - Coggle Diagram
LOCATION DECISIONS
QUANTITATIVE FACTORS - measurable in financial terms and have direct impact on costs or revenue and profitability
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labour costs = depends on wether business is capital or labour intensive - its abt wage rates and stuff
transport costs = some businesses will incur higher transport costs. Firms buy in bulk will reduce transport costs. services like hotels will need to be located near customers.
sales revenue potential = level of sales can depend on location e.g. confectionary shops. certain locations can add status
government grants = grants may be offered to attract you to locate in that country. also gov can give grants for unemployment etc
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break even analysis = calculates level of production that must be sold from each site to cover costs
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