Year 13 Summer Holiday Work – Mrs Doyle

You are to complete A05 Location and A08 the presentation over the Summer Holiday ready to hand in your first day back.

A05 – part one

Work through the headings below and use examples about how this relates to Harris Shoe shop.

A05

Location of your chosen business - Harris Shoe Shop has two locations:

Blackfen high street and Bexleyheath in the shopping Mall

Explain why they have decided to locate their business here based on:

Land Costs Labour costs and skills available Government and EU influence Access to raw materials Distribution costs Access to markets Communications and ICT Scaling up and scaling down International location Historical reasons

Some information to help you:

Land costs in Blackfen High street

http://www.findaproperty.com/searchresults.aspx?edid=04&salerent=0&areaid=6276

Harris do not own the shop they rent it – one reason for renting is the fact that the cost of buying ranges from £89,000 to £450,000 in the local area. It is based in the SE of England and this is very expensive compared to other places, but they have chosen here as their first store because it is on a busy high street but the rent is not the same as paying for one in London, or in the local shopping centre in Bexleyheath or in bluewater.

The rent for Balckfen is around £13,000 a year as you can see below this is similar to the local busineses:

They then expanded and decided to open a shop in Bexleyheath shopping centre because there are no shoe shops in the shopping centre when they first opened and they got a good location buy the main public entrance and so they have a steady flow of customers coming into the shop.

Blackfen has links to two busses the 132 and the 51 which actually links lots of local towns to the area, there is not a lot of parking but there is a free car park for two hours in the local co-operative which is quite large but the traffic is quite heavy as it connects up to the A2.

Delivery is difficult as they cannot park on the street but there is a back entrance that the vans can go to, so when stock is delivered it will not disturb the other local traders or disrupt the high street and the flow of traffic.

Land Costs in the shopping centre Mall

http://www.shopproperty.co.uk/PropertySearch.aspx?Town=bexleyheath&Location=Shopping%20Centre

The rent is much higher as you can see in the shopping centre that they are currently they pay around £90,000 a year for their rent which is £7,500 a month in fees, the reason why this is so much higher is because of the good location, they have lots more people visiting the shopping centre than you do the Blacken store which is located in the local high street, the stores are only about a 20 minute drive from each other.

Facts on the shopping centre

They have over 60 shops in the centre, they also have 1295 car parking spaces in the shopping centre plus additional from the Sainsbury next to the shopping centre, they have lots of places for people to dine and relax in ranging from Costa to cocktail bars near by, they also have big high street brand names

like: Dorothy Perkins, McDonald, BHS, Boots, WHSmith, HMV and many more in the shopping centre, the shopping centre is very busy all year round and they have an outside area as well as a indoor shopping centre. They also have excellent transport links, so people can get there from Sidcup, Blackfen, Eltham, Erith, Thamsmead, Dartford, Bromley so all the local towns are linked to the centre by bus and they have a train station nearby as well as lots of local taxi rinks. So it is very easy to get access to the shopping centre

BY CAR  From the M25, turn onto the A2 at junction 2 (South Orbital Roundabout) and follow towards London. From London and the Blackwall Tunnel follow the A2 coast-bound. Exit at the "Black Prince Interchange" and follow signs A220, Bexleyheath up Gravel Hill to the first set of traffic lights. Turn left into Albion Road, drive across first roundabout, double back at the next roundabout to enter the shopping centre car park first turning on the left.

Alternatively enter DA6 7JN for sat nav.

BY BUS Bexleyheath Clock Tower is the main stop on many bus routes, including 89, 132, 229, 269, 401, 422, 469, 486, 492, B11, B12, B13, B14, B15 and B16.

BY TRAINThe nearest station is Bexleyheath, served by Southeastern Trains from London terminals including Charing Cross, Victoria, London Bridge and from Medway and Kent coast towns. The station is approximately a 15-20 minutes walk.

Visit National Rail

Labour costs and skills aviable

This is a table which shows the skills that people have in Blackfen and bexley where bothg shops are located compared to London, what will this mean for the number of people they hire with qulafications and how educated their work force will be?

TownBlackfen Bexley London England

All People 500815617

2530033

23553209

1

No qualifications 1471 44887125792

91025167

4Level 1 qualifications 1128 32110 689228 5909093Level 2 qualifications 1144 35312 904205 6877530Level 3 qualifications 318 10759 518624 2962282

Level 4 / 5 qualifications 515 20704164246

7 7072052Other qualifications: Level unknown 432 12400 287879 2459460

Level 1 – F-D at GCSE or a level 1 qualification like BTEC Money and Finance level 1

Level 2 – GCSE or Level 2 Equivalent

Level 3 – A levels, Level 3 BTEC OCR etc

Level 4 – HND and Degree levels

Blackfen Bexley London England

WardLondon Borough Region Country

All people aged 16-74 5008 156172 5300332 35532091People aged 16-74: Large employers and higher managerial occupations 143 4953 233804 1243919People aged 16-74: Large employers and higher managerial occupations 2.8 3.17 4.41 3.5People aged 16-74: Higher professional occupations 166 6215 406360 1816039People aged 16-74: Higher professional occupations 3.3 3.98 7.67 5.11People aged 16-74: Lower managerial and professional occupations 981 31542 1178091 6656918People aged 16-74: Lower managerial and professional occupations 19.6 20.2 22.23 18.73People aged 16-74: Intermediate occupations 772 22453 542569 3366759People aged 16-74: Intermediate occupations 15.4 14.38 10.24 9.48People aged 16-74: Small employers and own account workers 453 11933 339186 2479472People aged 16-74: Small employers and own account workers 9.04 7.64 6.4 6.98People aged 16-74: Lower supervisory and technical occupations 399 11058 264617 2526120People aged 16-74: Lower supervisory and technical occupations 7.97 7.08 4.99 7.11People aged 16-74: Semi-routine occupations 556 17283 479073 4139697People aged 16-74: Semi-routine occupations 11.1 11.07 9.04 11.65People aged 16-74: Routine occupations 291 10529 306901 3203764People aged 16-74: Routine occupations 5.8 6.74 5.79 9.02

People aged 16-74: Never worked 49 2900 246692 964978People aged 16-74: Never worked 0.98 1.86 4.65 2.72People aged 16-74: Long-term unemployed 31 1343 72062 359728People aged 16-74: Long-term unemployed 0.62 0.86 1.36 1.01People aged 16-74: Full-time students 277 8247 478376 2498729People aged 16-74: Full-time students 5.53 5.28 9.03 7.03People aged 16-74: Not classifiable for other reasons 890 27716 752601 6275968People aged 16-74: Not classifiable for other reasons 17.77 17.75 14.2 17.66

Labour

KeyBlack = number of peopleRed = percentage of people for that area

Unemployment is low for both Blackfen and Bexlyehath so may need to recruit staff from local towns – also that is ok beause of the excellent trabsport links

DO some reaseach to see how much local shop workers are paid in Blackfen and Sidcup and then in London, Harris pay their staff £6 an hour, compare this to other busineses in local area

Government EU and influence

No reason for them choosing here, they got no government grants or help because they have not chosen area that falls into regional aid or other grants – find some more out about this and say how it could influence their location decisions in the future

Access to Raw Mateirals

Harris are a retailes and therefore not not have the need for any raw materials they buy in the stock already made, so this is an issue when they choose their location for either shop.

Distribuitoion Costs

There are often minimal to the store as they are quite close to the M25 and the access is easy for the drivers to get to they also get the products delicered in bulk I,e they buy them in large orders and then

get them delivered to one store, and then they will dsirtivute the shoes to the other store, so their distribution costs are also not an impoarmnt reason for choosing their current location.

Access to Markets

Customers is very important for Harris to be near but due to expansion they have found that they can send information to customers or post products to customers through the use of royal mail.

Explain how both their stores have access to customers through their locations.

Communications and ICT

Due to ICT they can locate their internet business anywhere.

Scaling up or scaling down

Harris may decide to expand to bigger locations if they become more successful or they may decide to locate to smaller locations if they get into financial difficulty..

Government and EU influence

Find out what sort of government grants can be offered to different businesses depending on where they locate for example if they locate in poorer areas of the country but explain why Harris could not really use this for their business.

International location

They are too small a business to expand over seas and all of their businesses products are brought from UK providers so they will not need to worry about an international location.

Historical Reasons

There are no historical reasons for their choice of location.

A05 -Part two

Now in detail explain why the location of their business may want to change over time – bigger store, more stores, where could they relocate to i.e. Bluewater – explain the advantages of this relocation!

A08

The presentation you need to explain how Harris can remain competitive or what they could to improve their competitiveness:

Customer focus Competitor watchdog

Suitable location Suitable resources Suitable ownership Market penetration Expansion/Merger Research and development