Business – 9.1 Location and scale – Location | e-Consult
9.1 Location and scale – Location (1 questions)
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Model Answer:
- Market Access: At a local level a business may target a specific community or neighbourhood (e.g., a boutique shop serving nearby residents). Nationally, the focus shifts to reaching a broader customer base across regions (e.g., a retail chain expanding to multiple cities).
- Cost Structure: Local decisions often consider lower rent and labour costs specific to the immediate area (e.g., a small café in a suburban strip mall). National decisions weigh variations in costs between regions, such as differences in wages, taxes, and transportation expenses across the country.
- Regulatory Environment: Local decisions must comply with municipal planning rules, zoning, and local licensing (e.g., a home‑based business needing council approval). National decisions must consider national legislation, industry standards, and possibly differing regulations between states or provinces.