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    The cost of the premises Essay (1055 words)

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    Certain areas of the country are linked to certain types of industry. Pottery companies know that if they want to expand or move then they will expand or move to Stoke-on-Trent in Staffordshire. So if Hobson’s locate somewhere, where there is a lot of industry then they will find the right kind of staff. They need to be able to have people in embroidery and textile skills. Benfleet (Thunderously) does have a lot of this kind of industry. Mr. K. Day doesn’t need to worry about this as he is a sole trader and doesn’t need to employ anyone.

    Cost of labour: Wages tend to be higher in certain parts of the country where the cost of living is high. The Southeast of England is an example of this high living. Firms that want to keep labour costs low will tend to go to areas where wages are generally lower or where there are large numbers of unemployed people willing to take lower paid work rather than live on benefits. Hobson’s and Mr. K. Day have not located in the areas they have done because of this. Hobson’s where previously located in London and the wages for employees are a lot higher there then in thunderously because living is expensive.

    The cost of the premises: Premise costs tend to be higher in the Southeast of England than elsewhere. Hobson’s are a big business so they should be able to handle the cost of their premises. Where Hobson’s where previously located the cost of their premises was a lot higher than where they are located now. Mr. K. Day how ever is located in two places. These two places are his house and his taxi. Both need to be paid for in one way or another. Around the country retail premises will cost more in the city centres or major shopping centres. Costs of premises will tend to be lower in outlying shopping areas around a town or a city. Retail or office premises that are on the ground floor of high street shops will be more expensive than those above street level or located away from the high street. The cost of industrial or warehouse premises will be affected by how close the premises are to major motorways and rail links (Networks).

    Local government charges:

    The households in the are where Hobson’s and Mr. K. Day are located pay council tax. Hobson’s and Mr. K. Day also have to pay a kind of council tax, but its called business rates. These rates pay for things like waste disposal, street lighting and road maintenance. The level of business rates is linked to the property’s rental value and will vary from council to council. It adds to the costs of running the Hobson and Mr. K. Day’s business. Firms will consider the likely level of business rates when deciding where to locate.

    Financial help: The government or the European Union may provide areas of high unemployment with financial help to develop business activity and employment. In some areas Regional Selective Assistance is available for projects that are worth more than 500, 000. Financial help from the government is managed by the Department of Trade and Industry. Local councils can sometimes provide financial help for business in their areas. Financial help from the government is managed by the Department of Trade and Industry. Hobson’s and Mr. K. Day can find more information on The Local council can sometimes provide financial help for Hobson’s.

    Transport links for supplies and distribution. The location chosen by Hobson’s and Mr. K. Day has to be accessible. Local customers need to be able to reach it easily. Businesses that distribute goods services nationally or internationally need to be near suitable transport such as motorways, railways and airports. Hobson’s needed to have motorways in which to deliver by parcels by road. Some motorways that are used by Hobson’s are M25, M1, M16 and the A127. Hobson’s need to be able to have good sea transport and easy to get to ports. Hobson’s may use ports such as Dover and Portsmouth. Hobson’s also need to have good airport links so that they don’t have to keep relying on a port or road links. Hobson’s may use airports like Stansted and Heathrow. Mr. K. Day needs to have suitable road links as he works on the roads around the local area.

    The need to be near customers: By being near its customers a firm has more change of making sales. Being near customers also reduces transport costs. It is for this reason that larger breweries are still to be found in cities such as Manchester, Newcastle and London when similar-sized manufactures of other products have moved outside the city. The beer and larger produced by breweries is bulky and difficult to transport. City centre location of breweries, near to pubs and hotels, reduces the cost and time involved in moving the finished products to where they are needed.

    History and Tradition: In the past certain areas have been linked to certain areas. Originally there where sound commercial reasons for these businesses to locate where they did. As long as these advantages remain it is sensible for businesses to follow the history and tradition. If these advantages are reduced, or become greater elsewhere, history and tradition will be less important and business may move away.

    Hobson’s History: Hobson’s opened in 1850 and has been going for 152 years. The family that started was the Hobson’s family. They started close to Woolwich Barracks, South London, England. Hobsons grew to such an extent that by 1860 five shops had been open in and around Woolwich. By the turn of the century the new Hobsons factory and offices in Tooley street (Between London bridge and Tower bridge were in operation. In the 1930s Hobsons purchased a church hall with surrounding land at Thundersley, Essex, with the long-term plan of drawing the business in one place. This would see the new “Hobson era”. In the early 50s the leather section moved to Lewisham and then in the 60s to Greenwich. By the late 50s Hobsons first purpose built factory at Thundersley had been erected. At the Thundersley site further extensions were made. Between 1992 and 1997 the last of the Hobsons business were finally drawn into the modern factory and offices site at Thundersly.

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