Business 0450 · IGCSE · Production of goods and services
Production of goods and services — practice question
GKK manufactures plastic bottles for a variety of products, from food to chemicals. It sources its raw materials from a low-cost country. GKK has a broad organisational structure with a short chain of command, so delegation is possible. The Government intends to bring in new legal controls to safeguard the environment. The Operations manager commented: ‘The Government may meet one of its objectives, but what impact does that have on GKK? This is a competitive market, so prices matter.’ He aims to raise efficiency and intends to adopt lean production.
(a)[2]
What does the term ‘chain of command’ mean?
(b)[2]
Identify any two Government economic objectives.
(c)[4]
Identify and explain two advantages to GKK of raising efficiency.
(d)[6]
Identify and explain two ways new legal controls to protect the environment could affect GKK.
(e)[6]
Explain one lean production technique. Recommend whether GKK should adopt this technique. 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 framework showing how orders or instructions move from senior management to lower levels.” …