An online furniture business is comparing a cheap warehouse far from suppliers with a costlier warehouse beside a motorway and skilled labour. Which decision is most appropriate?
Choose the cheapest rent because no other location factor can affect total operating cost or customer service
Compare rent savings with delivery times, transport costs and access to suitable workers
Choose the motorway site because customer demand is guaranteed there
Ignore suppliers because e-commerce removes the need to receive materials
37 exam-style questions on Edexcel GCSE Business 1.4 Making the business effective, covering 1.4.1a Limited liability, 1.4.1b Types of business ownership for start-ups, 1.4.1c Franchising, 1.4.2a Factors influencing business location, 1.4.2b Impact of the internet on location, 1.4.3a What the marketing mix is, 1.4.3b Balancing the marketing mix, 1.4.3c Impact of technology on the marketing mix, 1.4.4a The role and importance of a business plan, and 1.4.4b The purpose of planning business activity. Each one has a worked solution and a mark scheme showing where the marks go.