IB_BM_Location

What would not affect a businesses decision on location?

• Proximity to labour

• Proximity to customers

• Internet access

• Proximity to the government

Where would an internet based company be most likely to locate?

• An area of high unemployment

• A developed, high income country

• An area with access to raw materials

• An area within close proximity to customers

What is a greenfield site?

• A disused site envisioned for redevelopment

• An area of undeveloped agricultural land marked for commercial development

• An area with high unemployment marked for government development

• An area with a high business concentration

How are trade blocs beneficial?

• They allow countries to enjoy free trade

• It allows for businesses to meet other businesses

• Transportation of raw materials will improve the environment

• They allow for the development of small businesses

What would a business like Amazon not consider when looking for a location for their headquarters?

• Infrastructure

• Clean and modern centre

• Proximity to raw materials

• Communication links

What factor would be most important to a hairdressing company?

• Proximity to customers

• Transport

• Proximity to raw materials

• Size of site

For which of these businesses would proximity to customers be most important?

• An online bookstore

• A firm of international management consultants

• An Italian restaurant

• A manufacturer of supermarket products

Why might a startup business want to locate in the same building as other new businesses?

• To increase scale of production

• To share ideas and facilities

• To protect a brand or a business idea

• To reach customers

What is the strategic nature of location decisions?

• Impact on a specific department

• Short term impact

• Long term impact

• Impact on daily operations

Why is it difficult to reverse a location decision?

• Low cost of relocation

• High cost of relocation

• Easy decision making process

• Delegated to subordinates