Business Unit 4 ( Operations ) Flashcards
A) What is Job Production?
B) Advantage of Job Production
C) Disadvantage of Job Production
A) Production where products are made individually
B) Products will be high quality & the business can charge a high price.
C) Can be costly to make and customers may have to wait a long time for the product
A) What is Batch Production?
B) Advantage of Batch Production.
C) Disadvantage of Batch Production.
A) Production where quantities of similar products are made
B) Batches can be varied to meet the needs of customers.
C) Tasks may be repetitive and boring for workers.
A) What is Flow Production?
B) Advantage of Flow Production.
C) Disadvantage of Flow Production.
A) Productions of one product that takes place continuously.
B) Large quantities are produced for sale
C) Mass produced goods may not be of high quality.
A) Define Automation
B) Define Robotics
A) Production process involving machinery that is controlled by a computer rather than a person
B) The use of robots in the production process.
What are some advantages of using technology in production?
- Machines can replace worker, reducing costs
- Technology can operate 24/7 and never needs time off work, also reducing costs while increasing output
- Human safety is improved as machines can do dangerous jobs
What are some disadvantages of using technology in production?
- Machines can break down, disrupting production
- New technology may be expensive to buy
- The business may need to recruit skilled labour to program the computers.
What does “Quality” mean in goods or services?
- It’s fit for purpose ( Does what it’s meant to do )
- Complies with legal requirements
- Is customer satisfactory ( Does what the customer expects it to do )
Why might a business want to provide quality goods and services?
- Waste is reduced;
The number of goods that are rejects are reduced, which reduces;
- Recalls of defective products
- The return of produces from dissatisfied customers - The business gains a good reputation;
Satisfied customers will;
- Buy in the future from the business, ( retains customers )
- Recommend the business to others, increasing customers.
A) What is Quality Control?
B) Advantages of Quality Control
C) Disadvantages of Quality Control
A) A method of ensuring quality that involves a physical inspection by an inspector or machine.
B1) Stop poor quality goods from being sold
B2) Production can continue while inspection takes place
C1) It does not prevent waste
C2) Inspection can be costly ( unless done by machines )
A) What is Quality Assurance?
B) Advantages of Quality Assurance
C) Disadvantages of Quality Assurance
A) A method of ensuring quality where all workers are responsible for the quality of a product.
B1) It should reduce wastage and costs
B2) All workers are responsible for quality which may motivate them.
C1) Workers may be stressed by the responsibility of checking the quality
C2) Could slow down the overall time taken when producing a product.
A) What is face-to-face selling?
B) What are advantages of face-to-face selling
C) What are disadvantages of face-to-face selling
( Include for customers (c) and the business (b) )
A) When direct contact is made between buyer and seller during a purchase
B1) The customer can bargain with the seller over the price of a product (c)
B2) The business can explain and even demonstrate complex products (b)
C1) May not always be convenient for customers (c)
C2) If the customer bargains with the seller for a better deal
A) What are telesales?
B) What are advantages of telesales?
C) What are disadvantages of telesales?
( Include for customers (c) and the business (b) )
A) Sales that are completed over the telephone
B1) May cost less than selling from a shop (c and b)
B2) Products can be sold from a distance, saving customer’s time (c and b)
C1) Costs involved such as a warehouse to store goods and payment to telesales workers (b)
C2) Sellers may ‘cold call’ which can be a nuisance to customers.
What is e-commerce?
Buying and selling electronically
Name and explain 3 Influences that e-commerce has had on business activity as a whole.
1. Levels of employment
- Some businesses have reduced the number of their employees in favour of using technology instead.
2. Business Opportunities
- E-commerce has increased business opportunities, Increasing job opportunities and markets are now world wide.
3. Location
- Business who sell online can use warehouses in cheaper locations while keeping good transports link
- Online retailers don’t need shop ( or as many ) in expensive shopping centres.
A) What are some advantages of e-commerce to businesses?
B) What are some disadvantages of e-commerce to businesses?
A1) Online markets have increased, and it’s now easier for businesses to sell around the world
A2) It’s possible to sell 24/7 now
A3) Less employees will needed to be employed
B1) Competition will increase greatly, including competition from abroad.
B2) Cyber security is now needed for themselves and their customers
B3) As technology develops so must the e-commerce business, which can add to costs.
A) What are some advantages of e-commerce to customers?
B) What are some disadvantages of e-commerce to customers?
A1) Online selling had made it much easier for customers to compare prices and find the best deals
A2) Customers can buy 24/7
A3) Choice has increased as customers can from sellers around the world
B1) It is impersonal and so customers may not be able to ask questions
B2) Not everyone has access to or can use computer technology
B3) If the computer systems are not secure, customers may be at risk of personal data theft and bank fraud.
What are the 3 methods of providing customer service?
- After sales service
- Service provided to customers after they have bought the product. Will also include dealing with unsatisfied customers. - Product Knowledge
- Sales assistants know about the goods or services they sell and are able to provide customers with information and advice. - Customer Engagement
- Refers to friendly and welcoming communication between the buyer and the seller in face-to-face sales, telesales and e-commerce.
Name 1 Advantage & Disadvantage of;
After Sales Service
Advantage:
- This might help attract and retain customers, as customers can buy with confidence ( sales goes up )
Disadvantage:
- The costs when it comes to training workers to deal with customers and refund returns.
- Returned goods may have to be sold at a loss.
Name 1 Advantage & Disadvantage of;
Product Knowledge
Advantage:
- Attracts and retains customers which increases sales as customers are given information that helps them make good decisions. ( Import for detailed products)
Disadvantage:
- There are costs in training staff and can be very expensive to set up and run.
Name 1 Advantage & Disadvantage of;
Customer Engagement
Advantage:
- Good customer engagement can make customers feel special and want to return
- Can also be useful for gaining quick feedback from customers (e.g. areas where the business can improve).
Disadvantage:
- Customers may feel dissatisfied if they don’t get a prompt response.
- Additional workers may need to be employed, increasing business costs.
What are the 3 Main Features of the Consumer Protection Act 2015
**Goods bought in a shop: **
- Entitled to a full refund if faulty within 30 days; entitled to full refund within 6 months if product can’t be repaired or replaced
- May be entitled to a partial refund if the product doesn’t last a ‘reasonable’ length of time (up to 6 years).
Goods bought at home:
- Entitled to a 14 day cooling-off period i.e. can change your mind and get a refund.
- In addition to this, you have the same rights as when
goods are bought in a shop.
Services bought in a shop ( i.e fixing your car/ fitting a bath ):
- Entitled to have problems fixed, repaired, or partial refund if the service was not carried out properly first time
- Or if it wasn’t carried out in a reasonable time at a reasonable price;
What are some potential consequences to business for breaking the Consumer Protection Act 2015.
1. Damage to brand image - might put off potential customers. ( Will bring down sales revenue and profit )
2. Legal action/fine - will increase the businesses costs which will in turn bring the overall profits by the business.
3. Replacements/Refunds - The business may need to either replace or repair faulty goods, or even provide a refund. May cause them to lose out on sales.
List 6 things a business may need to consider when choosing where to locate.
1. Cost of rent/land
2. Proximity to customers
3. Population size
4. Proximity to competitors
5. Infrastructure ( e.g. good transport links )
6. Possible Government Grants/Benefits
Why is it important to consider the cost of rent/land when locating a business.
Cost of Rent/Land;
- Cheap rent = lowers costs which means higher profits
– It also means the businesses has a bigger budget to spend on other things ( i.e Advertising )
- Cheaper rent will draw in more competitors, which could potentially lead to having customers stolen.
- Cheap rent might mean the business is in a poor area, could have high unemployment rates and low customer demand
