Chapter-18

Case study 1:

a) State two factors that a service sector business should consider when 2 deciding
where to locate.

Ans: Availability of land/space/parking

Cost/availability of labor

b) Define infrastructure.

The term infrastructure refers to the basic physical systems of a business. These
systems tend to be capital intensive and high-cost investments, and are vital to a
country's economic development and prosperity.

Case study 2:

a) Explain two factors SCT should consider when deciding on the location of
a new factory in the same country.

Ans: Cost of land [k] to see if they can afford it [an] as they are a small business [app]
Government influence or examples such as grant / legal controls [k] which may
influence or restrict where / how the business is allowed to operate [an] when making
tables [app]

a) Identify two factors in deciding the new location for SCT.

Ans: Transport & Communication infrastructure: he factories need to be located near

areas where there are good road/rail/port/air transport systems.
Raw Materials/Components: the factories may need to be located close to where
raw materials can be acquired, especially if the raw material is to be processed while
still fresh

Case study 3:

a) Do you think a new business has a better chance of success if it 6 locates

where there is no competition? Justify your answer.
Ans: I think they have less chance of success. While setting up where there are no
customers may allow them to gain more customers [k] which can increase revenue [an].
But it might also mean there are few or no customers available [k] so small target
market [an]. However, if there is no demand, there is no point in setting up there unless
it is unique because they will not gain enough sales to break even let alone be
successful. [eval] [eval]

Case study 4:

a) Explain two reasons why choose the right location for the new salon is important
for Kolo.

Ans: Help attract customers/number of potential customers/close to customers/level of

income/target market [k] who want their haircut [app] increasing revenue/allowing it to
break-even [an]

Meet legal controls/government influence [k] otherwise could create a bad reputation [an]

Case study 5:

a) Explain one advantage and one disadvantage to RGP of choosing a 6 location in

the city centre.

Ans: Many people passing/close to customers [k] to the hotel [app] which could
increase possible demand/revenue [an]

Availability of suitable employees [k] as need to find them from local

community [app] which could increase the time/cost to find [an]

Case study 6:

a) Explain two possible problems for MLC of relocating its operations to 6 another
country.

Ans: Access to suitable employees/not easy to find employees [k] as at new

site will need 150 new employees [app] increasing recruitment/training
costs [an]

Access to/cost of suitable land [k] as will need a big space[an] to make
motorcycles [app]