What is a bulk-increasing industry, and where does it locate?

One whose finished product is bulkier or more fragile than its inputs, such as brewing or car assembly, so it locates near the market.

Why do service businesses usually locate near their customers?

A service is consumed where it is produced, so footfall and accessibility determine the volume of trade.

Give two reasons a business might locate where labour costs are lower.

Wages are often the largest single cost, and lower costs allow a lower price or a higher margin.

Why might a business choose a higher-cost location despite the expense?

Because the skills, suppliers or customers it needs are concentrated there, and being absent from that cluster would cost more than the rent.

WJEC A-Level Business 601-5238-2

Enterprise and Starting a Business

Topic overview Enterprise and the entrepreneur Stakeholders in a business Business plans and sources of support Legal structures of business The public and private sectors Business location Sources of finance for a new business Business revenue, costs and profit

Markets and Market Research

Topic overview Types of market Market size, market share and market trends Market segmentation The degree of competition in a market Perfect competition and monopolistic competition Oligopoly and monopoly Consumer protection Demand and the demand curve Supply and the supply curve Market equilibrium and changes in price and quantity Price and income elasticity of demand Inferior, normal and luxury goods The value of market research Primary market research Secondary market research Qualitative and quantitative data Sampling and avoiding bias

Marketing

Topic overview Market orientation, product orientation and asset-led marketing The marketing mix Product and the product portfolio Branding, USP and differentiation The product life cycle Extension strategies The product life cycle and cash flow The Boston matrix Pricing strategies Choosing the right pricing strategy Promotion: above the line and below the line Place and distribution channels The marketing mix in different contexts and global marketing New technology in marketing

People in Business

Topic overview The flexible workforce New technology and changing working practices Workforce planning The recruitment process, job analysis and job descriptions Internal and external recruitment Methods of selection Training Appraisal Labour productivity, absenteeism and labour turnover Organisational design and structures Delegation, empowerment and delayering Motivation theories Financial and non-financial methods of motivation Management and management by objectives Leadership styles and theories Employment rights, duties and equal opportunities Trade unions, conflict and dispute resolution

Operations Management

Topic overview Added value Job, batch and flow production Choosing the right method of production Productivity Capacity utilisation New technology in operations Lean production and kaizen Just-in-time and cell production Quality control and quality assurance Total quality management Stock control and stock control diagrams Purchasing and working with suppliers Innovation, research and development Internal economies of scale External economies of scale Diseconomies of scale and the survival of small firms

Business Finance and Accounts

Topic overview Internal sources of finance Loans, overdrafts and trade credit Share capital and venture capital Leasing and debt factoring Choosing an appropriate source of finance Finance for entrepreneurs and SMEs in Wales Revenue, costs and profit Types of cost Contribution and break-even Break-even charts and the margin of safety Budgets and budgeting Cash flow forecasting Improving cash flow The income statement Gross and net profit margins

Business Analysis and Decision-Making

Strategy and Implementation

Topic overview Aims and objectives SMART objectives Mission and vision statements Corporate, divisional and functional strategy Strategy, tactics and corporate plans SWOT analysis Porter's Five Forces The Ansoff matrix Organic growth Mergers and takeovers Horizontal and vertical integration Franchising as a method of growth Location and relocation decisions Rationalisation and outsourcing production

Managing Change and Risk

Topic overview Internal and external causes of change Planned and unplanned change The effects of change on a business Managing change effectively Storey's four approaches to managing change Resistance to change Lewin's three step process Organisational culture and leadership in change Evaluating the management of change The risks a business faces Risk assessment and preventative action Insurable and uninsurable risks Contingency planning and crisis management

The External Environment

Topic overview Government and the framework for business The economic environment Social and demographic change Technology and business Business ethics and corporate social responsibility The legal environment Business and the environment

Global Business

Topic overview International trade and protectionism Globalisation and its causes Global growth strategies and multinationals The European Union and the euro

Enterprise and Starting a Business

Business location

3 things to know
AS Unit 1

Overview

Six factors affecting where a business locates, bulk-reducing industry and bulk-increasing industry.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Evaluation

Evaluate the choice of location for a new independent café.

Key term

Name six factors affecting where a business locates.

Key term

What is meant by a bulk-reducing industry, and where does it locate?

Questions from this subtopic

Each one with the model answer underneath.

1
Name six factors affecting where a business locates.
Model answer
Proximity to the market, proximity to raw materials and suppliers, the availability and cost of labour, transport and infrastructure, the cost of land and premises, and government assistance.
2
What is meant by a bulk-reducing industry, and where does it locate?
Model answer
One whose finished product weighs less than its raw materials, so it locates near the raw material to save transport cost.
3
What is a bulk-increasing industry, and where does it locate?
Model answer
One whose finished product is bulkier or more fragile than its inputs, such as brewing or car assembly, so it locates near the market.
4
Why do service businesses usually locate near their customers?
Model answer
A service is consumed where it is produced, so footfall and accessibility determine the volume of trade.
5
Give two reasons a business might locate where labour costs are lower.
Model answer
Wages are often the largest single cost, and lower costs allow a lower price or a higher margin.
6
Why might a business choose a higher-cost location despite the expense?
Model answer
Because the skills, suppliers or customers it needs are concentrated there, and being absent from that cluster would cost more than the rent.

See the rest and revise

Other ways to work this

The same content, four other ways.

What is inside Levo

Six ways to work the same material.

1Closed book

2Open book

3Closed book

See a huge jump in your memorisation

Answer cold, learn it, then prove it stuck. Levo tracks the jump between your first attempt and your last.

Enterprise and Starting a Business

Markets and Market Research

Marketing

People in Business

Cram a whole paper in one sitting

Sort every topic into what you know and what you do not, then drill only the weak ones.

Gross profit = − cost of sales.

revenueprofitexpenses

Blank Blitz consolidates the facts

Rapid timed gap-fills on the terms and numbers you need to recall without thinking.

AShort-term disruption depresses the early figures.

BThe benefits build up as people become proficient.

CAn early judgement is usually too harsh.

Build It trains answer structure

Assemble a full-mark answer from its marking points, in the order an examiner wants them.

Need means something essential for survival, such as food, water or shelter.

TrueFalse

Test It catches misconceptions

Spot the fault in a statement. The traps are the mistakes students actually make.

721941163128510

Brain Breaks between sessions

Short focus games to reset attention, so the next set lands better than the last.

Every question in Enterprise and Starting a Business, on a schedule.

Attempt a question from memory, write the correct version, then attempt it again. Levo records the jump between your first attempt and your last, and brings each question back on the day you are due to forget it.

Start revising, £5 a month See how the method works

Or £46 a year, about £3.83 a month. Cancel anytime.