11 Identify and explain two factors that All Active should consider when deciding on the location of the new clubs. [6]

[BASEL Moderator]

Country S is enjoying an economic boom. During this time, businesses have increased their profits and unemployment has fallen. The only problem is inflation. All Active is a private limited company. It owns 20 sport and fitness clubs in country S. The Managing Director said: ‘This is a good time to expand by opening 5 more clubs. Finding the right locations is important. We will need to recruit more employees.’ He cannot decide whether it would be an advantage for All Active to become a public limited company.

11 Identify and explain two factors that All Active should consider when deciding on the location of the new
clubs. [6]

Possible KN Points:
• customers/level of demand
• availability of suitable land
• government regulations
• competitors
• suppliers
• Infrastructure/transport links/utilities
• access to employees
• cost of land/rent