Gcse Bussines 2.3

Question 1

What are the 3 methods of production?

Answer 1

—Batch production
—Job production
—Flow production

Question 2

What is job production?

Answer 2

It is when you make one product at a time.(for unique products)

Question 3

What is batch production?

Answer 3

When product is made in groups(make large quantities, adapt to vary products)

Question 4

What is flow production?

Answer 4

Products which are made continuously (efficient and quick but demotivating for employee)

Although is costly to set up and expensive if buying machinery

Question 5

What is procurement?

Answer 5

A business purchases an item it needs (STOCK)

Question 6

What is the ‘just in time’ stock control?

Answer 6

Holding as little stock as possible, and ordering small quantities regularly
[expensive]

-keeping stock at bare minimum. Usually used computer systems to calculate stock levels to automatically order more when needed.

-

Question 7

What is the economic of scale?

Answer 7

Unit cost decreases as output increases

Firm expands, so output increases

Question 8

What are logistics?

Answer 8

The handling of stock

Question 9

What is included in The sales process?

Answer 9

•Finding potential new customers
•Engaging with customer
•quick and effective service
•Post sale service
• response to customary feedback

Question 10

What are the steps to finding new potential customers?

Answer 10

-approach customer
-asses customer needs
-present product/service to customer
-getting customer to buy the product
-following up with the customer after sale

Question 11

Why is good product knowledge important for staff?

Answer 11

It makes it easier for customers to feel more confident to buy from firm. Resulting in quick and accurate customer service. Which is more suited unto their needs

Question 12

How must a staff engage with customer for effective customer service?

Answer 12

-must treat experienced customers positively, by being friendly. So they feel important and valued
( a business could do this by offering free refreshments)

Question 13

How can a business have a quick and effective service?

Answer 13

-staff answering questions quickly
-cutting down steps to get a customer in touch with company(by offering discounts)

Question 14

What is post sale service?

Answer 14

They offer user training (like instructions on how to use product)
-have specific after sale helpline—used to resolve any issues with product(some may need to be serviced?)

Question 15

How should a business respond to customer feedback?

Answer 15

-use private feedback: ask for feedback from customer experience, so they know how to improve.
-should reply to feedback so customer feels valued. Replying politely and offer gifts even in disagreement.

-use public feedback. Many individuals are influenced from the responses. So it can be used to make changes to business, to improve sales for future customers.

Question 16

What factors can quality depend on?

Answer 16

-materials made from
-production methods used
-product functionability

Question 17

How can quality control a firms cost?

Answer 17

Higher quality will mean less waste making the products unsellable, and reduced compensation from customers.

Hence reducing costs of customer service, (as there’s less complaints)

Question 18

How can quality help firms control costs?

Answer 18

High quality products will reduce waste from unsellable products, Aswell as reduce compensation from customer returns.

Hence reduce costs of customer service due to fewer complaints.

Question 19

How will good quality improve a firm?

Answer 19

Provide good brand image, helping give them competitive advantage, so can charge more to make profit.

Question 20

What systems can a bussines use to improve quality?

Answer 20

•quality assurance
•quality control

Question 21

What is quality control?

Answer 21

Checking products being made to find faults before reaching customers.

This is expensive but is cheaper than if customer returned or stopped buying product

If through service checks, Staff in stores having poor quality can have training

Question 22

What is quality assurance?

Answer 22

Quality is maintained throughout each process in making product. To stoop errors being made

-pass it on to next stages if good enough quality

-firms quality assessed by external body. Providing ratings to assure customers it good quality

Question 23

What are the benefits of ‘just in time ‘stock management ?

Answer 23

-stock will less likely go out of date

-helps cash flow as there is little delay between buying from supplier and selling to customers

Question 24

What are the cons of “just in time” management stock?

Answer 24

-will require lots of coordination between firm and supplier

-due to deliveries being frequent l: could lead to mistakes in ordering

-as firms can only sell in small quantities. They can’t benefit from economies of scale

Question 25

What are bar-gate-stock-graph?

Answer 25

-this monitors how much stock a bussines had
and when they should order more stock, before it reaches buffer.

Shows maximum stock so they don’t buy too much

Question 26

What does the buffer stock show?

Answer 26

Shows the reserve stock when there is a shortage supply and decrease in customer demand

Question 27

What are benefits of bar gate stock graph?

Answer 27

-help control costs

-shows how much should be ordered

-when to order