"Proximity-to-market" refers to the ability to providers and stay close to customers so as to

be in a position to accurately read and analyze customer needs and to respond quickly.
The availability of factors of production, such as labour or raw materials, can affect the
amount that can be produced and supplied. For example, if a firm producing motor vehicles
experiences a shortage of steel for its body panels, then its ability to produce vehicles will be
reduced.
the activity or condition of striving to gain or win something by defeating or establishing
superiority over others.

(of an object or action) require the payment of (a specified sum of money) before it can be
acquired or done.

Thursday 22nd April 2021

Locating a business

Company location rent reason

Angel’s Hair Salon. Location I £700 There is a lot of parking
Angel is opening a salon for their costumers and is
aimed at women aged also exclave which they
16-45. She would prefer want.
it to have quite an
exclusive image
as she wants to charge
high prices. Maximum
budget: £1200.
Jenkin’s Butchers. Location B £1700 (It is a busy place as
After 10 years in the being a mall and having
industry, Mick Jenkins is lots of shops near bye.
opening his own
butcher’s shop. He
doesn’t require
much space, but
being close to shoppers
would allow him to
attract passing trade.
Monthly budget: £1700.

Quick Cabs Location c £1200 It saves him money by

Local entrepreneur Tony £800 and also gets a
Costa is launching his location that has car
sixth business venture – a access and stays in a
taxi firm. Tony has a large prime area.
budget and desires a
location with good access
for his taxis. Maximum
budget: £2000.

Surprise! Party Planners. Location E £800 It saves them £100 and

Kim and Vanessa are gives them a office to
starting their first work there plain on.
business together,
organising weddings and
other special events
for clients. Maximum
budget: £900.

Valentino’s Coffee Bar. Location F £2000 It is a prime spot and

Carlo Valentino is looking near compactors.
for a site to open a
second branch of his
coffee shop business.
His first branch is
very successful in a
neighbouring town.
Maximum budget:
£2000.

Italia Pizzas. Harry &
Frank Thomas are leaving
their jobs to start their
own takeaway pizza
business. The majority
Location C £1200 It is for the right price
and can have passing
trade and delivered.
of their customers will
have pizzas delivered to
their homes, but a more
visible location would
create some
passing trade. Maximum
budget: £1200.

H&M. After 15 years Location A £2000 It is a prime location and

spent working in clothes have other commutators
shops, Beth Morgan has to attract the customers.
successfully applied to
open a franchise of H&M
in the town. The
franchiser wants Beth to
be sited in a prominent
location.
Maximum
budget: £2000

Rocks Jewellers. Gregg & Location D £400 It is a good place for the
Tina have been making business for the right
jewellery as a hobby ever price and can save them
since Tina took a £800.
jewellery making
course last year. They
now want to turn it into a
business where they sell
the items they produce.
Maximum budget:
£1200

Dealz4U. Location J £0 It will save him money

18-year-old Wes Little and he can invest that
plans to open a business money in to his online
selling second hand CD’s, website.
DVD’s and computer
games.
Maximum budget: £600

SoulMate. Fiona Perry is Location E £800 It is a office block and so

opening a dating agency. if will show her to look
Maximum budget: £800. ligate.
 Want to be close to customers
Good transport and road links
Cost, parking
Availability of raw materials

Close to labour

Good technology links Close to customers

competitors
F1 track:

place Accessibility labour cost Noise pollution

Chelmsford Easy to get to but It would take a 40 billion Yes, it will be
there is only one lot of labour first near village
way to get there to smooth the house and small
so could cause ground and then housing county.
traffic jams. make a road to
the track and
then make the
track which will
need a lot of
labour.
Hartlepool It is accessible to It will require a 20 billion Yes, as it will be a
many and is near lot of labour but street race it will
the sea helping could be help as be very noisy.
people that have if we make a
boat to come street race.
too.