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Location decisions - Coggle Diagram
Location decisions
Factos affecting manufacturing business
Production methods
Job production
Small scale
Nearness of components
Not relevant
Relevant
Flow production
Large scale
Market
Used to be super important
Transportation
.+ heavy + expensive
Nowadays
Better transporation links
Perserving transport
Faster
More direct
Raw materials
Might be bulky
Expensive to transport
Might be fresh
Transport quickly
Nearness is crucial
External economies of scale
Supporter business needs to be close by
Repairment
Installation
Equipment
Research departments
Availability of labour
depending on the skills and n° needed
no skills and quantity
Rural areas
Skilled workers
Near universities e.g
Government influence
Positive
Encourage certain area/ production sector
State-funded grants
Negative
Regulations, high taxes & restrictions
Transport and communication
Near trasnport systems
Roads
Railways
Watereway
Airport
Export
Near port
Power and water supply
Industries with high demand of these
Locate near reliable sources
Climate
Can benefit certain industries
Silicon Valley dry climate
Suitable for dry chips
Factors affecting retailing business
Shoppers
Actractines of the area to the type of shopper
Expensive products
High incomes area
Nearby shops
malls/centres
Popularity and competition
Availability of suitable vacant premises
Customer parking
Encourages to visit the area
Rent/taxes
.+ central, higher taxes/rent
Acces for delivery vehicles
Security
high crime rate
Insurance companies wont insure business
Legislation
Restriciting and regulating laws
Factos affecting service sector business
Costumers
Service with direct contact
Plumber
Electricitian
Hairdresser
Gardener
Personal prefernces of the owners
Comfortness of the owner
Close to their homes
Technology
Allow remote services
In other
Region
Country
State
Availability of labour
Depend on the skill and amount of labour required
Climate
Tourism
Close to a
Beach
Mountain
Skyiing platfrom
Good climate
Near to the business
Depend on other services business
Banks
Reapairment services
Rent/ Taxes
Cheaper to not be on main streets
Factors businesses consider to operate in a specific country
New markets overseas
Increasing sales elsewhere
Cheaper to relocate rathen than transport
Cheaper/ new sources of materials
Cheaper
Look for new horizons
Runs out
Difficulties w/ the labour force and wage cost
Too expensive or too many problems
look for cheaper location
Specific skilled workers
Rent/ Taxes considerations
High or increasing
Might relocate
Government incentives
Country might look for foreign business
Lower taxes
No restrictions
grants
Trade and tariff barriers
Impede trading