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Edexcel IGCSE Business Studies 1.4 decisions on location

Practise location decisions by applying factors to factories, shops or service businesses and weighing costs against long-term benefits.

Syllabus
First assessment 2019
Course
Business Studies 4BS1

Exam points

  • Apply location factors such as labour, materials, customers or competitors to cases.
  • Analyse how proximity to labour, materials, customers or competitors affects costs and sales.
  • Evaluate a location decision by weighing short-term costs against long-term benefits.

1.4 Decisions on location question 1

[Maximum number: 6]

Cadbury was founded in 1842 when John Cadbury opened a shop in Birmingham in the UK. The shop sold cocoa and drinking chocolate. Cadbury is now one of the major chocolate manufacturers in the world.

In 1918 the first overseas Cadbury factory was opened in Hobart, Tasmania in Australia. Another factory opened in South Africa in 1938. Cadbury chocolates are sold across the world and other factories have been opened. Cadbury produces many well-known brands, such as Dairy Milk, Buttons and Crunchie. It also produces ice cream and cakes.

Cadbury is now part of Mondelez, the largest snack business in the world.

Analyse two factors that could influence Cadbury when locating a new factory.

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