Gcse Bussines 2.3 Flashcards
What are the 3 methods of production?
—Batch production
—Job production
—Flow production
What is job production?
It is when you make one product at a time.(for unique products)
What is batch production?
When product is made in groups(make large quantities, adapt to vary products)
What is flow production?
Products which are made continuously (efficient and quick but demotivating for employee)
Although is costly to set up and expensive if buying machinery
What is procurement?
A business purchases an item it needs (STOCK)
What is the ‘just in time’ stock control?
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.
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What is the economic of scale?
Unit cost decreases as output increases
Firm expands, so output increases
What are logistics?
The handling of stock
What is included in The sales process?
•Finding potential new customers
•Engaging with customer
•quick and effective service
•Post sale service
• response to customary feedback
What are the steps to finding new potential customers?
-approach customer
-asses customer needs
-present product/service to customer
-getting customer to buy the product
-following up with the customer after sale
Why is good product knowledge important for staff?
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
How must a staff engage with customer for effective customer service?
-must treat experienced customers positively, by being friendly. So they feel important and valued
( a business could do this by offering free refreshments)
How can a business have a quick and effective service?
-staff answering questions quickly
-cutting down steps to get a customer in touch with company(by offering discounts)
What is post sale service?
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?)
How should a business respond to customer feedback?
-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.
What factors can quality depend on?
-materials made from
-production methods used
-product functionability
How can quality control a firms cost?
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)
How can quality help firms control costs?
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.
How will good quality improve a firm?
Provide good brand image, helping give them competitive advantage, so can charge more to make profit.
What systems can a bussines use to improve quality?
•quality assurance
•quality control
What is quality control?
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
What is quality assurance?
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
What are the benefits of ‘just in time ‘stock management ?
-stock will less likely go out of date
-helps cash flow as there is little delay between buying from supplier and selling to customers
What are the cons of “just in time” management stock?
-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
What are bar-gate-stock-graph?
-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
What does the buffer stock show?
Shows the reserve stock when there is a shortage supply and decrease in customer demand
What are benefits of bar gate stock graph?
-help control costs
-shows how much should be ordered
-when to order
