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| |  Wednesday, 10 October, 2001, 14:57 GMT 15:57 UK Lunch Lesson Six - Location  All the weather news comes from the Met The Met Office is forecasting a sunny outlook as it moves to a new site in Exeter. The Met Office has been providing weather forecasts for more than 150 years. It started out largely serving the shipping industry. But it now employs more than 1,000 staff providing a range of services. These include the BBC weather, helping supermarkets to predict when they should buy in more ice-cream or hearty soups; advice for farmers, fishermen and airlines; and forecasts for the health service so that it can predict when it might be faced with flu outbreaks. Choosing its new location took more than a year, with Exeter winning out over Norwich, Reading and its current home, Bracknell. As most of what the Met Office does involves staff receiving and analysing data via computer, the actual physical location isn't important. The Met Office could do its work anywhere. Staff retention But staff retention is a big issue. The Met Office relies on the expertise of highly skilled IT workers. But in the Bracknell area there are hundreds of businesses competing for such staff. By moving to Exeter the Met hopes there will be less competition for their services and that a countryside location could be an advantage in attracting staff. The other issue is house prices. Bracknell is in the south-east, where house prices have shot up in the last few years. In Bracknell many of the staff at the Met Office may not be able to afford to get on the property ladder, whereas house prices in Exeter are lower. Met Office staff will make the move down to Exeter gradually with the new site fully operational by 2003. Student guide The Met Office is moving to Exeter. It's just a sign of the times. Lots of businesses have become footloose and fancy free as the need to be close to city centres has been reduced by improved communications. Some businesses have gone much further.
So companies send work out to India, using the internet and the telephone, and once it is done it is sent back. It keeps costs down. Not all businesses are so flexible though. Just think... Make a list of six businesses near you: The right spot? Different businesses have different needs. Here are some of the factors that influence choice of location. Cost of the premises Some places are much more expensive than others. You can work out the expensive locations from the style of the businesses you find there. The High Street and shopping centres are full of famous names, which can afford prime sites. Side streets are the home to small businesses, which can only afford lower rents. London is more expensive than almost everywhere else but in most city centres, property is more expensive than in the suburbs and rural areas. Just think... Why would a business want to set up in a city centre when property is so expensive? The right workforce Businesses that need particular skills want to be in a location where they can find the right people. This might mean staying put because skills and training can develop over time. Local colleges often provide courses that relate to the needs of the local area. Just think... Are there any business in your area that need people with special skills? Does your local college have courses which train people specially for jobs in the local area? You might find the information on the college's website. The customers A business that deals directly with its customers must be near them. A hairdresser, for example, can only cut hair if the customer is at hand.
Just think... Make a list of businesses that need to be near their customers. The competitors Competitors have different effects. Some businesses like to be far from competitors. Others seem to like to be close by. If you are far away from competitors, it's hard for customers to go elsewhere - so you may capture the local market. A video shop is often based far from others. If you want to buy a pair of shoes, you'll often find four or five shoe shops all together. Estate agents tend to gather together as well. Just think... Think of some other examples of business that stay away from competitors and those that gather together. Try to explain each example. Logistics Businesses need to deliver their products to the customers. The customers may be the general public or other businesses. Whoever they are, they don't like delays - so being close to good transport links can be important. Just think... If you run a business which is supplying its products by mail order or the internet, what factors will help you to decide where to locate? Suppliers Most businesses need a range of resources. These may be easy to get anywhere - or may tie the business to a particular location. Many car plants are in areas where cars have been made for a long time because the parts that they put together are made nearby. Just think... If a car manufacturer is looking at a new site, what factors will be taken into consideration? How will the location of parts suppliers affect the decision? Will the government help? Some parts of the country have high levels of unemployment. The government tries to help by giving grants to help businesses get established. Places that are given this sort of support are known as Assisted Areas. You can find out more about the sort of help that is available on the website of the Department of Trade and Industry, www.dti.gov.uk Just think... What factors will affect the location of the following businesses? | |
See also:  03 Oct 01 | Education 26 Sep 01 | Education 19 Sep 01 | Education 12 Sep 01 | Education 04 Sep 01 | Education Top Education stories now: Links to more Education stories are at the foot of the page. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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