Choosing The Best Location
Specification:
1.4 Choosing the Best Location • the importance of location to growing businesses • issues relating to overseas location |
Candidates should understand the importance of location to growing businesses in terms of minimising costs and increasing revenues.
Candidates need to be able to consider the issues relating to international or global expansion. These issues include physical presence in international markets and cost considerations. |
Choosing The Best Location
Lesson Objectives:
- To understand why a business will want to relocate (D-E)
- To analysis the advantages and disadvantages of relocating overseas (B-C)
- To evaluate whether a selected business should relocate (A*-A)
- To understand why a business will want to relocate (D-E)
- To analysis the advantages and disadvantages of relocating overseas (B-C)
- To evaluate whether a selected business should relocate (A*-A)
Starter Activity:
http://www.businessstudiesonline.co.uk/live/index.php?option=com_content&view=article&id=7&Itemid=12
http://www.businessstudiesonline.co.uk/live/index.php?option=com_content&view=article&id=7&Itemid=12
What are the issues to consider when expanding overseas?
- What are the costs involved? - labour/tax/relocation costs
- Possible impact on revenues? - does the new location attract customers?
- Availability of resources? - skilled workforce/cheap labour
- What are the costs involved? - labour/tax/relocation costs
- Possible impact on revenues? - does the new location attract customers?
- Availability of resources? - skilled workforce/cheap labour
Advantages of locating overseas:
Disadvantages of locating overseas:
- Cheaper labour (China/India)
- Access to resources we don't have in the UK
- Financial incentives from foreign governments (lower taxes)
- Avoids protectionist measures from foreign governments (tariffs and quotas)
- Overseas markets grow quickly (Tesco)
Disadvantages of locating overseas:
- Different rules and regulations to follow (safety/treatment of staff)
- Customers may have different tastes - can be expensive to change your products to suit different markets
choosing_the_best_location_case_study.doc | |
File Size: | 97 kb |
File Type: | doc |