Theme 2

Question 1

Quality Control

Answer 1

(this is based on inspection.Wokers will produce the goods whilst managers check they meet required standard, may be every single product) end of the production process

Question 2

Quality Assurance

Answer 2

(This is a system where quality checks are carried out at every stage of the production process)

Question 3

Total Quality Management

Answer 3

(TQM is a philosophy where quality is engrained in the companies culture, quality should be built in rather than checked)

Question 4

Kaizen

Answer 4

This is a Japanese term which means continuous improvement, the whole workforce must embrace this idea.

Question 5

Impacts of Interest rates

Answer 5

• Consumer demand (higher rates mean people are less likely to take a loan out)
• Operating costs (higher rates leads to higher operating costs)

Question 6

Impacts of Exchange Rates:

Answer 6

• Firms that export lots will want low exchange rates as it means their goods are cheaper abroad
• Firms that import lots will want high exhange rates as they will pay less for raw materials

Question 7

The business cycle

Answer 7

is a pattern of boom and slowdown which has been present in the UK economy for more than 150 years. When the economy grows too fast people spend too much, errors are made and recession begins

Question 8

Consumer Protection:

Answer 8

These laws are designed to protect customers from being misled. For example:

• Sale of Goods Act (requires goods to be of the purpose advertised)
• Trade Description Act (the good must do what is advertised)

Question 9

Employee Protection:

Answer 9

These laws protect employees from being exploited by businesses. For example:

• Minimum wage (means all workers are paid a decent wage)
• Right to a contract of employment (better job security)

Question 10

Environmental Protection:

Answer 10

These laws protect the environment from damage by businesses. For example

• Landfill Tax (heavily tax to discourage the use of landfills
• Environmental Protection Act (risk assessments to be carried out by companies)

Question 11

Competition Policy:

Answer 11

The Competition and Markets Authority was established to lauch investigations into cartels, takeovers and anti-competitive practises

Question 12

How one can make themselves more compeititve:

Answer 12

• Price Cutting (often chosen by supermakets, it can help boost market share)
• Increase Product differentiation (means consumers will want that product more this can be done through design and USPs
• Collusion is where two competitors collaberate togther to ensure survival