Factors Affecting Location

Factors affecting location

What Are The Factors Affecting Location Of A Business?

A business will have to consider several factors affecting the location. Usually, it will have to balance several factors in making a decision. Different business industry sectors will have different factors affecting location. If the business is expanding, it will open branches in cities where the organisation did not previously have a presence.

A business might also want to restructure its operations. It might do this by bringing together some existing departments into new purpose built premises. It might decide to shut its less profitable operations and open branches in locations that offer more business potential.

These Business Studies revision slides are based on the Textbook: Business Studies (Fourth Edition) by Karen Borrington and Peter Stimpson.

This chapter will explain:

  1. Factors affecting the location of manufacturing business.
  2. Factors affecting the location of a service sector business.
  3. Factors affecting the location of retailing business.
  4. Factors a business may consider when deciding which country to locate operations in.


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