SHU business

Question 1

Employees of mondelez only work from 8:00am to 4:00pm. Which of the following would be most likely to increase capacity utilisation at mondelez?

Answer 1

A

• Increase capacity> the maximum a business can produce over a period of time given the resources
• Increasing work hours
• Business has more time operating machinery to make products
• Amount of products goes up

Question 2

Explain how the £6m investment by mondelez international might improve productivity at the Sheffield factory

Answer 2

• More biscuits> new production line> fewer workers
• More biscuits> no workers
• New production line> machinery wouldn’t break down
• Fewer workers means less output

Question 3

Suggest two problems with holding too much stock?

Answer 3

• Higher security costs

- Reduce stock for more use of space for production

Question 4

Identify the three types of stock

Answer 4

• Raw materials
• Working progress
• Finished goods

Question 5

Assess the importance of an appreciation of the pound (£) to the total costs of a business such as Benson’s foods

Answer 5

Advantages:
- Appreciation of the pound> strong pound makes raw materials/imports cheaper and raw materials will fall
- Increased profit margin> buying same amount of stock which cheaper lead to Bensons to reduce prices and maintaining same profit
- Achieve a high demand
Disadvantages:
- Depreciation of the pound
- Fuel and energy will be affected

Question 6

Evaluate one reason why quality assurance system is important to a chocolate manufacturer like whitakers

Answer 6

Quality assurance is the culture within a business and everyone is responsible that all the products are fot for purpose
Benefits:
- Allow manufactured products are changed and hare high standard- Whitakers are in a niche market and supply high standard
- Quality assurance is important to them
- Each chocolate products> same size, appearance
- Wastage of coco milk should reduce, therefore reject sales should be reduced
- Helps to protect good reputation and loyality

Costs:

• Involves more resources and time
• Costs may only be a small proportion> little impact
• In niche market, not impact price of the chocolate
• High profit margins> pay for production