SHU business Flashcards
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?
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
Explain how the £6m investment by mondelez international might improve productivity at the Sheffield factory
- More biscuits> new production line> fewer workers
- More biscuits> no workers
- New production line> machinery wouldn’t break down
- Fewer workers means less output
Suggest two problems with holding too much stock?
- Higher security costs
- Reduce stock for more use of space for production
Identify the three types of stock
- Raw materials
- Working progress
- Finished goods
Assess the importance of an appreciation of the pound (£) to the total costs of a business such as Benson’s foods
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
Evaluate one reason why quality assurance system is important to a chocolate manufacturer like whitakers
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