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WorksheetsIB_BM_Location
Total questions: 20
Worksheet time: 10mins
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
What is the impact of a business's location on its size and scale?
Increased scale
Decreased scale
No impact
No influence on size
What is the potential drawback associated with having a large scale of operations?
Increased operating costs
Decreased regulations
Lower quality products
No drawbacks
What is the element of the marketing mix concerned with how the products gets to the customer?
Product
Price
Place
Promotion
What are location decisions taken at?
Middle management levels
Lowest management levels
Highest management levels
Delegated to subordinates
What does location play an important role in?
Business size
Customer base
Product quality
Employee satisfaction
Ella, Priya, and Eesha started a business manufacturing large furniture items. Why did they decide to locate their business close to their customers?
To keep transport costs down
To minimize land and property costs
To attract foreign manufacturers into the country
To have easy access to parking facilities
Elsie, Sebastian, and Grace are planning to start a business selling handmade crafts. They want to locate their business close to their market. What is a factor they should consider?
The proximity to competitors
Wage rates in different regions
The availability of skilled labour
The ease of access and traffic congestion
Amelia and James are planning to start a business. They are considering a location with low business rates. Why might they choose such a location?
To minimize land and property costs
To minimize the impact on local communities
To encourage manufacturers to locate where unemployment is high
To avoid congestion and reduce strain on roads
What is a benefit of locating in a high profile city such as London or New York for office-based businesses?
To minimize land and property costs
To improve the image of the business
To have easy access to parking facilities
To attract foreign manufacturers into the country
William and Harry are planning to start an online business. Florence, their business advisor, explains how the development of online businesses has impacted location decisions. What did she likely tell them?
Businesses are restricted to fixed premises
Businesses can only operate in high profile cities
Businesses can only operate in specialist shopping areas
Businesses can serve national markets and operate far away from customers
