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I have the location menu bar entry which looks like an compass arrow pointing north east.

This is not a third party application but a privacy service setting. I can usually move and remove entries with dragging using the Command key, but this doesn't work on this particular entry.

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Disable Location Services completely

You can try to disable Location Services from System Preferences » Security & Privacy.

enter image description here

Remove the menu bar entry – Method 1

Other than that, if you still want to use location services, but don't want to see the menu bar, you can open a Finder window, press Cmd-G and enter the following location:

/System/Library/LaunchAgents

From this folder, move the file com.apple.locationmenu.plist somewhere else, e.g. your home folder. Then, reboot. To restore this, place the file back, and reboot.

Remove the menu bar entry – Method 2

Alternatively, run the following in a Terminal:

launchctl unload -w /System/Library/LaunchAgents/com.apple.locationmenu.plist

Note: don't use sudo here; that will fail. This will unload and store the setting. To reverse this, run the same command with load instead of unload.

Method 1 untested as the original author doesn't have OS X Lion. Method 2 corrected and works on Lion.

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