Business 0450 · IGCSE · Production of goods and services
Production of goods and services — practice question
Saltan manufactures a range of cars. Inventory levels are too high, so the firm intends to cut output at its factory. Staff were informed that the business has to shrink its workforce as competition is rising. The trade union is unhappy that 360 of the 1200 skilled full-time employees at Saltan are due to be made redundant. A trade union spokeswoman commented: 'Saltan ought to shorten the hours of all employees instead of cutting the number of jobs.' Saltan's Operations Director is weighing up methods to raise efficiency in the factory.
(a)[2]
What does the term 'trade union' mean?
(b)[2]
Identify two situations (other than rising competition) when a business may have to reduce the size of its workforce.
(c)[4]
Identify and explain two possible problems for Saltan caused by having a high level of inventory.
(d)[6]
Identify and explain two methods Saltan could use to improve efficiency.
(e)[6]
Do you think Saltan should reduce the number of working hours for every employee instead of cutting jobs? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A group of workers who come together to make sure their interests are protected” …