Efficiency

Question 1

What is efficiency?

Answer 1

Efficiency looks at all factors of production and is when the output from a number of inputs is maximised.

Question 2

How can a business increase efficiency and productivity?

Answer 2

• improving land
• renewable/reusable resources
• training
• investment
• risk taking
• increasing the size of the business

Question 3

What are the benefits fo high efficiency and productivity?

Answer 3

• meet demand.
• reduction in unit costs.
• competitive advantage due to lower prices.
• can improve the quality in the long term.
• more appealing to stakeholders.

Question 4

Example: How did the CO-OP improve efficiency?

Answer 4

• implemented electronic shelf label solution.
• labour productivty improved by 70%.
• store printing costs reduced by 40%.
• 40% of retail estate now using ESL.