Business location — OCR GCSE Study Guide
Exam Board: OCR | Level: GCSE
Where a business chooses to locate can make or break its success. This study guide explores the critical factors behind location decisions—costs, market proximity, labour, and raw materials—giving you the analytical tools to evaluate business scenarios like a senior examiner.
Overview

Location is one of the most critical strategic decisions a business can make. Once a business commits to a location by signing a lease or purchasing property, it is extremely difficult and expensive to change. This topic is heavily tested because it requires candidates to demonstrate synoptic thinking—linking location to operations, human resources, finance, and marketing.
Examiners expect candidates to go beyond simply stating that a location is "good" or "cheap." High marks are awarded for explaining how specific location factors impact a business's costs, revenues, and overall competitiveness. You must be able to apply the four main location factors (Costs, Proximity to Market, Labour, and Raw Materials) to different business contexts, from small independent retailers to large multinational manufacturers.
The Four Key Location Factors
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