Operations

Question 1

What are the 4 points of sale promotions?

Answer 1

Price reduction-encourages first time try
Loss leader-sold bellow cost - entice customer into shop
Competition-often for high value - customers spread message
Free samples-gets customers to try

Question 2

What is Batch production?

Answer 2

Where One type of product is made, and then production is switched to make a different product.

Question 3

What is flow production?

Answer 3

Production of one product that takes place continuously using a production assembly line

Question 4

What is job production?

Answer 4

Production where products are made individually

Question 5

What is one advantage and disadvantage of job production?

Answer 5

Advantage– The business can charge a high price and make a good profit.
Disadvantage – can be a high cost method of production because of skilled workers.

Question 6

What is one advantage and disadvantage of batch production?

Answer 6

Advantage– It is cheaper than job production.
Disadvantage – machines need resetting between different batches, which costs money.

Question 7

What is One advantage and disadvantage of flow production?

Answer 7

Advantage – Large quantities are produced
Disadvantage – May not be of high quality

Question 8

What are two advantages of using technology in production?

Answer 8

Machines can replace workers, reducing costs.
Waste is reduced as machines are usually more accurate than humans.

Question 9

What are two disadvantages of using technology in production?

Answer 9

Machines can breakdown disrupting production.
New technology may be expensive to buy.

Question 10

What are two benefits of providing quality goods and services?

Answer 10

Waste is reduced
Th business gains a good reputation

Question 11

What is quality control?

Answer 11

Inspecting the quality of the goods or services produced and ensuring that they are of the required standard

Question 12

What is quality assurance?

Answer 12

The whole business focusing on quality with the aim of preventing quality problems from arising

Question 13

What are two advantages of quality control?

Answer 13

Production can continue while inspection takes place- output is not affected
Producing good quality products will improve reputation of this business

Question 14

What are two disadvantages of quality control?

Answer 14

It does not prevent waste
Inspection can be costly

Question 15

What are two advantages of quality assurance?

Answer 15

It should reduce wastage and costs
If quality goods and services result it will improve the reputation of the business

Question 16

What is a disadvantage of quality assurance?

Answer 16

Workers may be stressed by the responsibility of having to check the quality of their own work

Question 17

What is an advantage and disadvantage of face-to-face selling?

Answer 17

Adv- useful where customers like advice and personal service from assistants
Dis- May not always be convenient for customers

Question 18

Want is an advantage and disadvantage of telesales?

Answer 18

Adv- Can increase sales as customers can ask questions about products and bargain about the price
Dis- Costs involved such as a warehouse to store goods and payment to telesales workers

Question 19

What is an advantage and disadvantage of e-commerce to businesses?

Answer 19

Adv- possible to sell 24/7
Dis- Competition has increased

Question 20

What is an advantage and disadvantage of e-commerce to customers?

Answer 20

Adv- Choice has increased because customers can buy from sellers around the world
Dis- not everyone has access to or can use computer technology

Question 21

What is an advantage and disadvantage of customer service?

Answer 21

Adv- It increases sales
Dis- There are costs in terms of training workers

Question 22

What is an advantage and disadvantage of after sales service?

Answer 22

Adv- increases sales
Dis- There are costs in terms of training workers

Question 23

What is an advantage and disadvantage of product knowledge?

Answer 23

Adv- it increases sales
Dis- Costs in training staff

Question 24

What is an advantage and disadvantage of customer engagement?

Answer 24

Adv- increases sales as customers feel comfortable with the buying experience
Dis- costs in training staff

Question 25

What are three responsibilities of the consumer law?

Answer 25

Goods and services produced must be: Good standard As described Safe to use

Question 26

What are three impacts to a business when the consumer law is broken?

Answer 26

Reduction in sales Bad reputation Paying compensation for injury or death

Question 27

What are five factors that influence business location?

Answer 27

Costs Proximity to the market Proximity to labour Proximity to materials Government

Question 28

What is procurement?

Answer 28

The management of purchasing within a business

Question 29

What are the four stages of procurement?

Answer 29

Identifying goods and services to buy Choosing suppliers Ordering goods and services Receiving deliveries from suppliers

Question 30

What are five logistical and supply decisions that have impacts on businesses?

Answer 30

Time Reliability Length of the supply chain Costs Customer service

Question 31

What are five needs for finance?

Answer 31

Establishing( setting up a new business) Expansion Recruitment Marketing Running the business

Question 32

What is an advantage and disadvantage of owner’s capital?

Answer 32

Adv- no need to repay Dis- owners may not have enough savings

Question 33

What is an advantage and disadvantage of retained profit?

Answer 33

Adv- no need to repay Dis- business may not have made profits

Question 34

What is an advantage and disadvantage of sale of assets?

Answer 34

Adv- no need to repay Dis- may take time to sell

Question 35

What is an advantage and disadvantage of overdraft?

Answer 35

Adv- repayment is only due when the business closes or the overdraft is no longer needed Dis- can be expensive as interest is charged for each day money is owed

Question 36

What is an advantage and disadvantage of trade credit?

Answer 36

Adv- no interest if repaid within agreed time limit Dis- interest is charged if payment is late

Question 37

What is an advantage and disadvantage of taking on a new partner?

Answer 37

Adv- no need to repay Dis- share of the profits

Question 38

What is an advantage and disadvantage of loan?

Answer 38

Adv- repayment is usually paid monthly Dis- interest must be paid

Question 39

What is an advantage and disadvantage of share issue?

Answer 39

Adv- no need to repay Dis- shares can only be sold by limited companies

Question 40

What is an advantage and disadvantage of crowdfunding?

Answer 40

Adv- no need to repay Dis- interest will be paid if the money is raised through a loan

Question 41

What is a break-even forecast?

Answer 41

A prediction about the break-even quantity, based on estimates of future sales revenues and costs

Question 42

What are two uses of using a break-even forecasts?

Answer 42

Planning how much to produce Planning the price to charge