'Location is the most important factor determining the success of a large car manufacturing business.' Discuss this statement.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.

1. [20] Answers may interpret the question in terms of business location generally within a particular country or area, or relating to a decision to relocate / diversify, possibly to another country.
2. [20] Answers may include: a discussion of the importance of location to any business (including a car manufacturing business) – access to skilled labour, raw materials, transport and communication facilities, governmental support / incentives / light regulations, proximity to other businesses and services, customers; an understanding that the particular needs and strategies of specific businesses will affect location decisions and considerations and influence the significance of particular location issues and decisions; a recognition that while location is likely to be a significant success factor it will not be the only important factor or necessarily the most important factor; other critical success factors determining success will be discussed, i.e.: Operational efficiency – including innovative design, lean / efficient production processes leading to Product differentiation – distinctive features, 'bells and whistles' that lead to distinctive brand attributes leading to Customer satisfaction – supported by effective marketing and an effective response to the demands of existing and emerging market opportunities.
3. Strong answers will fully explain the potential contribution made by 'Location' to success of a car manufacturing business- but will also recognise that other factors might be equally / more important such as the 3 set out above and not forgetting the quality of leadership and management in the business - location is but one important factor.