Syllabus: OCR - GCSE Business
Module: 4. Operations
Lesson: 4.5 Business Location

Introduction

This topic, “4.5 Business Location”, is part of the OCR GCSE Business J204 specification and sits within the broader unit on Operations. It directly addresses how and why businesses decide where to locate, and its importance is clear: location affects costs, customer access, staff recruitment, and ultimately business success.

Teaching this topic helps students develop analytical thinking, as they assess multiple, often conflicting, factors that affect a business’s location decision. It also links naturally to the concepts of cost, revenue, market proximity, and legal influences covered earlier in the course.

Key Concepts

According to the OCR GCSE Business specification, students should be able to:

• Identify and explain the key factors that influence where a business chooses to locate. These include:

  • Proximity to market

  • Proximity to raw materials

  • Availability of labour

  • Competition

  • Costs

  • Technology and infrastructure

• Evaluate how the nature of a business (e.g., online vs. bricks-and-mortar) affects location decisions.

• Analyse the impact of changing external factors, such as digital connectivity or government incentives, on business location decisions.

Students are expected to demonstrate a clear understanding of how location affects operational efficiency and customer reach, especially in the context of different types of businesses—start-ups, manufacturers, and service providers.

Real-World Relevance

The decision of where to locate isn’t theoretical. It’s one of the most important choices a business can make—and it’s one that’s been in the headlines repeatedly.

• Amazon: Opened regional distribution centres across the UK, including in areas like Doncaster and Tilbury, due to proximity to motorways, availability of space, and lower labour costs.

• Greggs: Locates its high street stores in areas with high footfall, particularly near transport hubs and town centres.

• Start-ups and tech firms: Many opt for flexible co-working spaces in cities like Manchester and Bristol, where the talent pool is strong and digital infrastructure is excellent.

Bringing these examples into the classroom helps ground student understanding in the real world and shows how dynamic and strategic the location decision can be.

How It’s Assessed

This topic can appear across Section B and C of Paper 1 in OCR GCSE Business. Typical assessment formats include:

• Short explain questions (e.g. “Explain one reason why a manufacturer may choose to locate near raw materials”)

• Case study analysis requiring evaluation of location factors in a given scenario

• Extended answers (6 or 9 marks) with command words such as:

  • Explain – define the factor and apply to context

  • Analyse – show cause-effect chains

  • Evaluate – weigh pros and cons and reach a supported conclusion

Students should practise structured paragraphing: identify the factor, explain its impact, apply to a business example, and offer judgement when required.

Enterprise Skills Integration

Business location decisions are perfect for developing enterprise capabilities:

• Problem-solving: Weighing trade-offs between cost and customer reach.

• Decision-making: Prioritising key factors under constraints.

• Commercial awareness: Understanding how business context shapes operational decisions.

• Teamwork and communication: In classroom tasks where students work in groups to pitch location strategies.

Tools like Enterprise Skills’ Business Simulations allow students to experience this first-hand, making location decisions in a realistic virtual business and seeing the consequences play out—plug-and-play and built for real classrooms.

Careers Links

Teaching business location links naturally to:

• Gatsby Benchmark 4: Linking curriculum to careers

• Gatsby Benchmark 5 & 6: Simulations and discussions about real workplaces

Relevant careers include:

• Retail Manager – selecting store sites

• Operations Manager – overseeing logistics and production

• Property Analyst – advising businesses on location strategies

• Entrepreneur – deciding where to launch a business

Discussing these roles helps students connect the dots between theory and the world of work.

Teaching Notes

Common pitfalls:

• Students often treat location factors as isolated rather than interconnected.

• Overuse of generic examples without context (e.g. “It’s near people” vs. “Locating near a city centre increases footfall for a café”).

Tips for delivery:

• Use local examples: where is the nearest Amazon depot, Greggs, or small business hub?

• Role-play: give students a business type and ask them to pitch a location with justification.

• Reinforce the impact of digital vs physical presence—especially relevant post-COVID.

Extension activities:

• Introduce a mini simulation: groups choose between two locations and must justify their decision based on customer access, staffing, and rent costs.

• Use Skills Hub tools to offer scaffolded practice with model answers and exam-style questions.