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FACTORS AFFECTING THE LOCATION OF A BUSINESS

Essay, Research Paper There are many factors to consider when locating a new business which all play an important part in successful sale of a product. For some firms only a few factors will be important. Other firms may need to consider and balance a complex mixture of location factors. One important factor to consider is the infrastructure of business site: 1) The business needs very good transport systems for the site the most common are (road, rail, river, canal, ports)

Essay, Research Paper

There are many factors to consider when locating a new business which all play an important part in successful sale of a product. For some firms only a few factors will be important. Other firms may need to consider and balance a complex mixture of location factors. One important factor to consider is the infrastructure of business site: 1) The business needs very good transport systems for the site the most common are (road, rail, river, canal, ports)

2) The business needs good communication systems, telephone systems, fax e-mail.

3) Production is important to a business so a firm needs to know whether there are ancillary firms in the area to help deal with waste disposal, repair machinery and to transport the finished good. Is there labour available

The supply of labour is another important factor to consider. The business person will need to consider whether the right kind of skilled, or semi skilled labour is available or grants for retraining if not; What the local wage rates are like; whether the housing school, and leisure facilities will attract and keep labour in the area. How much government, local authority, and EC aid is available. Cost of the site

The firm will need to find out

How long the site will be needed?

Should it be rented or purchased?

Will the site need to be drained and leveled?

What is the level of rates payable to the local council?

Is there room for expansion?

Are there any risks with the site will this raise the insurance premiums? Geographical factors

The business needs to locate near water supplies especially paper manufacturers, pharmaceuticals, and electricity generation.

Waste disposal is also important for the business as some firms produce a great deal of waste during production there are various laws, which strictly control how this should be disposed of.

Prevailing wind is very important as the wind direction can take pollutants away from areas that are densely populated.

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