Location Decisions (Quick Revision) Flashcards Preview

A2 Business Studies - Operations Management (Quick Revision) > Location Decisions (Quick Revision) > Flashcards

Flashcards in Location Decisions (Quick Revision) Deck (7)
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1
Q

Define: Location Decisions

A

Location decisions is a choice of where to base the firm’s facilities.

2
Q

State two quantitative methods that a firm might use to choose a location.

A
  • Investment appraisal

* Break-even

3
Q

State four qualitative factors that might affect a firm’s location decision.

A
  • Reaction of employees
  • Quality of life
  • Image of the area
  • Ease of access to resources
4
Q

State three reasons why the choice of location might be important to a firm.

A
  • May affect image (e.g. perfume companies)
  • May affect costs
  • May affect likely demand (e.g. hotels)
5
Q

State two reasons why a firm may choose to move location.

A
  • Change in cost conditions at original location

* Need for more space or different facilities

6
Q

What is the Examiner’s note for Location Decisions?

A

The location decision will be influenced by a range of factors, such as:

  • Costs
  • Closeness of customers
  • Image

And…

• Infrastructure

7
Q

What is the Evaluation point for Location Decisions?

A

The importance of location depends on the business. It is critical for firms such as retailers and hotels that need to attract customers to their location.