Business Section 4

Question 1

What are the 3 different production processes?

Answer 1

Job production
Batch production
Flow production

Question 2

Job production?

Answer 2

when individual products are made one at a time to meet specific customer needs. e.g. tailor-made suits

Question 3

2 Advantages of job production?

Answer 3

Sell the product at premium price = Revenue

Worker satisfaction and motivation

Question 4

2 disadvantages of job production?

Answer 4

Requires highly skilled workers which means higher costs due to training

Output is limited

Question 5

What is batch production?

Answer 5

When identical products are made in batches

Question 6

2 Advantages of batch production?

Answer 6

Product variety to satisfy customer needs

Automation can be used which reduces cost of recruitment/wages

Question 7

Disadvantage of batch production?

Answer 7

A lot of storage space is needed leading to higher costs of storage space

Question 8

What is flow production?

Answer 8

Continuous and mass production of the same product over and over again. Relies on machines

Question 9

2 advantages of flow production?

Answer 9

High productivity=maximise profit

Machines are used instead of humans leading to lower costs of recruitment, training and wages

Question 10

2 Disadvantages of flow production?

Answer 10

Machinery is very expensive, long time to pay off loans

Repetitive and boring for workers

cost of redundancies

Question 11

Division of labour?

Answer 11

when production is broken down into many separate tasks e.g. building a car and then workers are assigned to just one stage to complete

Question 12

Advantage of division of labour?

Answer 12

Speeds up production

Question 13

Disadvantage of division of labour?

Answer 13

Employee boredom and dissatisfaction

Question 14

Automation?

Answer 14

A production process involved machinery controlled by a computer rather than a human

Question 15

2 advantages of automation?

Answer 15

Machines can work 24/7 without breaks or holidays, increasing sales

Reduces costs like recruitment,training, wages

Question 16

2 disadvantages of automation?

Answer 16

Machinery is very expensive to buy, update, repair etc

Break downs cause downtime

Question 17

3 ways that a business can ensure it delivers good quality products/services to customers?

Answer 17

Train workers well

Use good suppliers/materials

Invite customer feedback to find out strengths and weaknesses

Question 18

2 benefits to businesses of giving good quality products/services to customers?

Answer 18

Good brand image/brand loyalty

Business will be able to charge higher prices

Question 19

Product recall?

Answer 19

When the business asks the customer to return the product to the factory due to a safety issue e.g. faulty car brakes

Question 20

Quality control?

Answer 20

Quality is checked at the end of the production process

Question 21

2 advantages of quality control?

Answer 21

Helps prevent faulty goods being sold

Does not disrupt production

Question 22

2 disadvantages of quality control?

Answer 22

Does not prevent waste of resources when products are faulty

Process of inspecting goods costs money e.g. pay wages to the inspectors

Question 23

What is quality assurance?

Answer 23

Quality is checked throughout the entire process and workers are responsible for quality

Question 24

advantage of quality assurance?

Answer 24

mistakes are found when they happen, rather than at the end which is a waste of resources

Question 25

disadvantage of quality assurance?

Answer 25

May slow down productivity

Question 26

3 methods of selling?

Answer 26

e-commerce Telesales Face to face

Question 27

What is e-commerce?

Answer 27

Selling products online instead of in a physical shop e.g. amazon

Question 28

2 advantages of e-commerce to the business?

Answer 28

Lower fixed costs-no rent for shop, electricity etc Large audience potential as website can reach many more people than a shop

Question 29

2 disadvantages of e-commerce for the business?

Answer 29

Cost of delivery and returns Risk of cyber attack and high cost to prevent it

Question 30

2 advantages of e-commerce to the customer?

Answer 30

Easy price comparison Open 24/7/365

Question 31

2 disadvantages of e-commerce to the customer?

Answer 31

Lack of personal contact Security-are bank details safe?

Question 32

What are telesales?

Answer 32

Selling products over the telephone

Question 33

Advantage of telesales?

Answer 33

Customer able to discuss the product/negotiate a price, leading to sales being more likely

Question 34

Disadvantage of telesales?

Answer 34

Customer still cannot see/feel the product

Question 35

2 advantages of face to face method of selling?

Answer 35

Can answer specific questions/problems that the customer has and help them Customer can give immediate feedback which will help the business solve problems

Question 36

2 disadvantages of face to face method of selling?

Answer 36

Shops are more expensive to operate than a website (rent) Good employees cost money to recruit and train

Question 37

3 methods of providing a good customer service?

Answer 37

After sales service - make sure customer is happy after purchase Good product knowledge - Being able to give detailed advice to customer about the product Customer engagement - Developing a good relationship with them after

Question 38

What is the Consumer Protection Act 2015?

Answer 38

That’s the customers products/services that they buy must be of satisfactory quality Fit for purpose As described

Question 39

2 comsequences of breaking the consumer protection act 2015?

Answer 39

Damage to brand image - lose customer Legal action/fine - increased costs

Question 40

What is procurement?

Answer 40

the management of purchasing within a business

Question 41

What is logistics?

Answer 41

the management of the transportation and storage of goods

Question 42

4 main roles of the procurement department?

Answer 42

Identifying goods and services to buy Choosing suppliers Ordering goods and services Receiving deliveries from suppliers

Question 43

3 factors that may affect which products/services a business chooses to buy from suppliers?

Answer 43

Time of year - More ice creams in summer Changed in technology - New and improved mobiles Changes in fashion and lifestyle - Ready meals, trends