Commercial Operations: Commercial Enterprises: Physical And Ecommerce Location Factors (Copy)
Cheat Sheet: 2.1.5 Physical and E-commerce Location Factors
| Factor Type | Key Factors | Explanation | Example |
|---|---|---|---|
| Physical Location | Labour | Availability of skilled/unskilled workers | Garment factory near textile labour |
| Markets | Proximity to customers for sales | Retail shop in city centre | |
| Transport | Good access to roads/ports/airports | Car factory near highways | |
| Power | Reliable electricity supply | Steel plant needing constant power | |
| Raw Materials | Near source to reduce costs | Sugar mill near sugarcane fields | |
| Competition | Choosing location to avoid/benefit from rivals | Coffee shop opening away from strong competitor | |
| Suppliers | Close to input sources | Furniture maker near timber suppliers | |
| Communication | Good internet/phone access | IT company in urban hub | |
| Government Influence | Tax breaks, zoning laws, subsidies | Industrial estate with tax incentives |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Factor Type | Key Factors | Explanation | Example |
|---|---|---|---|
| E-commerce Location | Wi-Fi/Internet | Reliable, high-speed internet for online operations | Amazon’s servers requiring strong connectivity |
| Warehousing | Needed for storage and quick deliveries | Daraz warehouse near city hubs | |
| Technology Specialists | Skilled IT staff for website/apps | Software developers maintaining online store | |
| Logistics | Strong distribution networks for fast delivery | Foodpanda needing courier networks |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Appropriateness in Situations | Best Fit |
|---|---|
| Heavy industry (steel, cement) | Physical factors more important (raw materials, power) |
| Retail shop | Physical location near markets/customers |
| Online store (clothing, electronics) | E-commerce factors (Wi-Fi, logistics, warehousing) |
| Hybrid businesses (e.g., supermarkets with online delivery) | Combination of both physical (market proximity) and e-commerce (logistics) |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Summary | Key Idea |
|---|---|
| Physical factors = focus on location, resources, and accessibility. | |
| E-commerce factors = focus on internet, warehousing, IT skills, and logistics. | |
| Appropriateness depends on business type (manufacturing vs. online retail). |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course