Homeschool Guide: These lesson plans are a guide for parents. Content may contain errors — always cross-reference with official exam board specifications.

business location and expansion

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4 detailed 50-minute lessons with teaching scripts, worked examples, parent guides, and assessment criteria.

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Lesson Overview

Total Lessons: 4
Tier: Foundation and Higher
Duration: 50 minutes per lesson (200 minutes total)
Exam Boards: AQA, Edexcel, OCR, Eduqas, CCEA

Learning Objectives

Prerequisites

Materials & Equipment

Lesson 1: Introduction: business location and expansion

Duration: 50 minutes

Starter Activity (5 minutes)

Quick Recall

Write down everything you already know about business location and expansion. Then check against the key terms: Business Exam Tips. Use a mini-whiteboard or paper.

Main Content (35 minutes)

Parent/Teacher Guide:
Before lesson: Read the script below. Pre-teach key vocab: Business Exam Tips.
If stuck: Re-read the revision notes (link above), then break the content into smaller steps.
Extension: See the Stretch & Challenge ideas in Lesson 4.
Teaching Script (35 mins):
Mins 0-5 - Hook: "Today: business location and expansion. By the end you will be able to answer exam questions on it unaided. It connects to the rest of Business Studies because the ideas here recur across the spec."
Mins 5-20 - Direct Instruction: Work through the core ideas below one at a time; after each, ask your student to explain it back in their own words.
Mins 20-30 - Guided Practice: Model the worked example together, then let your student attempt the first practice question with guidance.
Mins 30-35 - Independent Practice: 2-3 practice questions from Lesson 3 below, with immediate feedback.
First Look

Start with the revision notes summary, then attempt: Explain three factors a business should consider when choosing a location for a new factory.

Plenary (5 minutes)

Check Out

Your student states one thing they learned and one question they still have about business location and expansion.

Lesson 2: Core Concepts: business location and expansion

Duration: 50 minutes

Starter Activity (5 minutes)

Review Previous Lesson

Quick recap: write 3 key points from Lesson 1 on business location and expansion. Check them against the notes below.

Main Content (35 minutes)

Key Fact: Location factors: proximity to customers/market, transport links, availability of suitable labour, cost of premises, competition, government incentives (grants, enterprise zones).
Key Fact: Business plan: a document setting out the business idea, market research, financial forecasts, marketing strategy. Essential for securing finance from banks or investors. Shows the business has thought through its strategy.
Key Fact: Organic growth: expanding from within - opening new outlets, increasing product range, growing online sales. Slow but controlled, less risky than external growth.
Key Fact: External growth: mergers (two firms agree to join) and takeovers (one firm buys another). Faster growth but risky: cultural clash, high cost, integration problems. Franchising: rapid expansion with lower capital risk.
Key Fact: Economies of scale: as a business grows, average cost per unit falls (bulk buying, technical efficiency, financial economies, marketing economies). Diseconomies of scale: beyond a certain size, average costs rise (poor communication, coordination problems, low morale).
Business Exam Tips: For expansion questions: 1) Identify the growth method, 2) Explain how it works, 3) Give advantages and disadvantages, 4) Consider the business's specific circumstances (size, industry, resources), 5) Recommend the most appropriate method with justification.

Practice (10 minutes)

Q: Explain three factors a business should consider when choosing a location for a new factory.

Answer: 1) Proximity to raw materials/suppliers (reduces transport costs for heavy/bulky inputs). 2) Transport links (access to motorways, ports, rail for distribution). 3) Availability of labour (skills in the local area, wage costs, unemployment levels). Other factors: cost of land, government grants, proximity to customers.

Plenary (5 minutes)

Explain Back

Your student teaches the key points back to you without looking. Fill any gaps immediately.

Lesson 3: Application: business location and expansion

Duration: 50 minutes

Starter Activity (5 minutes)

Quick Recall

Recall the key terms: Business Exam Tips. Define each in one sentence.

Main Content (35 minutes)

Parent/Teacher Guide: Let your student attempt each question alone first, then compare with the model answer. Award method marks for correct working even if the final answer is wrong.

Q1: Explain three factors a business should consider when choosing a location for a new factory.

Answer: 1) Proximity to raw materials/suppliers (reduces transport costs for heavy/bulky inputs). 2) Transport links (access to motorways, ports, rail for distribution). 3) Availability of labour (skills in the local area, wage costs, unemployment levels). Other factors: cost of land, government grants, proximity to customers.

Q2: Compare organic growth and external growth as ways for a business to expand.

Answer: Organic growth: slow, controlled, funded from profits or borrowing, lower risk, management retains full control. External growth: rapid expansion through merger/takeover, high cost, risk of cultural clash and integration problems, but achieves instant market share increase. Organic is safer for risk-averse businesses; external suits businesses wanting rapid market dominance.

Q3: Explain what is meant by economies of scale and give three examples.

Answer: Economies of scale = as output increases, the average cost per unit falls. Examples: 1) Purchasing economies (bulk buying at discounted prices). 2) Technical economies (using larger, more efficient machinery). 3) Financial economies (large firms can borrow at lower interest rates). 4) Marketing economies (spreading advertising costs over more units).

Plenary (5 minutes)

Error Review

Review any questions answered incorrectly. Identify whether the error was knowledge, method, or reading the question.

Lesson 4: Exam Practice: business location and expansion

Duration: 50 minutes

Starter Activity (5 minutes)

Command Words

Review what these command words require: state (one point), describe (say what happens), explain (say why), compare (both sides), evaluate (judgement).

Main Content (35 minutes)

Extended Answer

Extended question: Full-Mark Response A successful local bakery wants to expand nationally. Evaluate franchising versus opening company-owned stores as growth strategies. <div class="

A grade 9 response will: evaluate franchising (rapid expansion with lower capital risk, franchisees invest their own money, motivated owner-operators, but less quality control, shares profits, brand risk if franchisee performs poorly); evaluate company-owned stores (full control, all profits retained, consistent quality, but high capital cost, slower growth, all risk on the business); conclude: franchising suits rapid national expansion with limited capital, but the bakery must invest in strong training and quality systems to protect its brand.

Exam Tips: Always link location choice to the TYPE of business (retail needs customers; manufacturing needs transport) | Distinguish between mergers (agreed) and takeovers (hostile) | Explain economies of scale with the 'average cost per unit falls' formula - be precise
Common Errors: Watch Out! Students often make mistakes here. Wrong: Bigger is always better for a business because economies of scale mean lower costs. Correct: Economies of scale reduce average costs up to a point, but diseconomies of scale can set in when a business becomes too large: communication breaks down, decisions take longer, staff feel disconnected and morale falls, coordination costs increase. Many large businesses actually split into smaller units to avoid diseconomies. The optimal size depends on the industry - some industries (utilities, car manufacturing) benefit from huge scale; others (creative industries, personal services) work better small.
Stretch & Challenge (Grade 8-9):
  • Synoptic links: explain how business location and expansion connects to another Business Studies topic you have studied
  • Real-world: research one real-world use or example of business location and expansion
  • Critical: "What are the limitations of the models used in business location and expansion?"

Plenary (5 minutes)

Assessment Criteria
  • Got it: Confident explanation + correct worked examples
  • Getting there: Main points OK, needs support with detail
  • Not yet: Confused on key concepts - re-run Lesson 2

Homework & Consolidation

Recommended Resources

🎓 Smart Lesson (Guided)