Practice Flashcards
Flip to reveal answersName three methods for evaluating location options
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All 20 Flashcards — Insourcing, reshoring and reorganizing production
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Question
Name three methods for evaluating location options
Answer
Cost-benefit analysis, quantitative scoring, break-even analysis, investment appraisal (payback/ARR).
💡 Hint
CBA, scoring, break-even, appraisal
Question
Name three reasons a business might relocate
Answer
Closer to customers/growing market, reduce costs, better infrastructure, forced by external factors.
💡 Hint
Customers, costs, infrastructure, forced
Question
How to structure a location comparison exam answer?
Answer
Identify key factors → Argue FOR Option A → Argue FOR Option B → Evaluate → Justified conclusion.
💡 Hint
A → B → Evaluate → Conclude
Question
Methods: cost-benefit, scoring, break-even, ___
Answer
Investment appraisal (payback/ARR) — comparing long-term returns.
💡 Hint
Investment appraisal
Question
Common exam mistake with location questions?
Answer
Listing generic factors without linking them to the specific business in the case study.
💡 Hint
Must apply to the business
Question
Name three risks of relocation
Answer
High moving costs/disruption, loss of skilled staff, loss of customers, time to establish in new area.
💡 Hint
Costs, staff loss, customer loss, time
Question
When comparing locations, use both ___ and ___ arguments
Answer
Quantitative (numbers) and qualitative (judgement) — for a balanced answer.
💡 Hint
Quant + qual
Question
Relocation: can cut costs + access new markets but is ___ and ___
Answer
Risky and expensive — disrupts operations and may lose staff/customers.
💡 Hint
Risky + expensive
Question
Stakeholder analysis for location asks ___
Answer
How will each option affect employees, customers, shareholders and the local community?
💡 Hint
Impact on each stakeholder
Question
Location exam: always use ___ and give a ___
Answer
Case study data; justified conclusion.
💡 Hint
Data + conclusion
Question
Relocation is a ___ risk, ___ reward decision
Answer
High risk, high reward — must be justified by long-term benefits outweighing short-term costs.
💡 Hint
High-high
Question
Quantitative scoring for location works by ___
Answer
Assigning numerical scores to key factors for each option and comparing totals.
💡 Hint
Score + compare totals
Question
External factors forcing relocation include ___
Answer
Lease expiry, natural disaster, government policy changes.
💡 Hint
Lease, disaster, policy
Question
A justified conclusion is essential for ___
Answer
Top marks in 10-mark questions — state which option and explain WHY.
💡 Hint
10-mark top marks
Question
Compare locations using both ___ and ___ factors
Answer
Quantitative and qualitative — numbers AND judgement.
💡 Hint
Quant + qual
Question
Break-even analysis for location calculates ___
Answer
How many sales are needed at each location to cover costs — lower BEP = safer.
💡 Hint
Sales to cover costs
Question
Quick: Relocation = high ___, high ___
Answer
Risk, reward.
💡 Hint
Risk + reward
Question
Always use ___ data in location exam answers
Answer
Case study data — specific numbers and facts from the scenario, not generic knowledge.
💡 Hint
Case study data
Question
Investment appraisal for location uses ___ or ___
Answer
Payback period or ARR — comparing long-term returns from different locations.
💡 Hint
Payback or ARR
Question
Loss of skilled staff during relocation happens because ___
Answer
Some employees cannot or will not move to the new location — losing experience and knowledge.
💡 Hint
Won't/can't move
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Topic 5.4 hub
Location
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