capacity utlaisation

Question 2

capcity utalsiation definition

Answer 2

how much capcity a business is using

capcity-organiastions max output it can produce in given time period

Question 3

under utalsiation definition

Answer 3

when firms have too much capcity nad not enoigh demadn

not getting enough use out machners,not utlising its resouces, space wasted etc

Question 4

over utalsition definition

Answer 4

too much demand and not enough capcitu

Question 5

strategies to increase capiaty utlasition (used for under utlisation)

Answer 5

price reductions, changing their pricing strategy to increase their demand, therefore increase their capcity utalsiation

promotions, increase sales and demand

rationlsaiton-downsixzing their busienss to then reduce its capaity e.g moving to a smaller location, smaller building

reducing length of the working week

selling oof factories and equipment

making staff redudnat that arent needed

Question 6

strategies to reduce capicty utlaisation (used for over-utilisatio n busiensses

Answer 6

outsourcing-giving takss to workers outside of buisness

reducing demand by inceasing prices

create waiting lists creating feeling that its more desrible

long term-expand, make business bigger

increase more staff so can do the work

Question 7

dis of over utalsition

Answer 7

reducing in quality levels
‘
may have to turn down potential customers as can not increas output anymore

theres no downtime-machines are on all teh time

human error workers working long hours
stress to workers
incerased risk of mistakes

Question 8

dis of underutalsition

Answer 8

workers demotivated as ddont have to do much
less opportunity for promotion so demotiavting for staff

nagative brand image e.g not using al the shevles in the supermarket