Local Communities- the local communities are interested firstly because of employment, An example of this is when Asda branch was opened at Wembley, the area was rather run down and the unemployment was very high so Asda helped by providing the local community some work. Ashely Cash and Carry and Asda offers work experience to local schools, which helps pupils to experience of what it is to go to work.
Location of Asda in Wembley Park and Ashley Cash and Carry in Rayners Lane Asda and Ashley Cash and Carry need to find a good location for their business. This is because if they fail to find a good location, they won't attract many customers, and this will cost Asda and Ashley cash and carry a lot of money.
The fixed costs have to be paid each month. This includes rent/mortgage, bills and wages. Relocation and transferring goods to it are costly and not easy. Rent is also expensive and businesses need to make sure that they get it right the first time. All these factors will result in their business failing, causing their investment to go to waste. There are many factors affecting a business. These include:
Nearness to markets
Businesses need to locate their business near their target market. This will increase their chances of attracting customers and, therefore, increasing sales revenue. Asda and Ashely Cash and Carry also need to locate their business near to high-population so they can sell their products and services. They can achieve this through market research.
Businesses need to make sure that their business is easily accessible, both for customers and staff. This is because a deprivation of either factor will cause the business to not run smoothly. Asda need to make sure that the location they choose has enough people to come and work for them. They also have to employ staff with the right qualities i.e. people with the right educational and training background. They also have to be available at the right price. 80% of deliveries are made by road. This is also the most common way businesses receive their goods. Air and rail transport are also under this category. However, air transport is quick but too expensive and rail transport is cheap but also unreliable in this country.
Businesses also need to check the amount/intensity of competition in and near their location. It will not be wise for a small start-up to locate near big, established businesses that sell the same or similar product. Asda in Wembley Park is the only big retail shop in the area so they don't have to fear competition from their competitors such as Tesco, Sainsburry's, waitrose etc.
Government or city councils some times provide grants for businesses that will locate in a run-down area or an area with high unemployment. The area where Asda is Located at the moment in Wembley Park was a run down area and Brent Council gave funds to Asda to reduce unemployment and to regenerate the area.
Introduction: In this assignment I have been instructed to investigate how businesses develop. The first company that I have chosen is Ashley Cash and Carry, which is a sole trader, and the second company is that I have chosen is ASDA, which is Public Limited Company.