Business 7115 · O Level · Production of goods and services
Production of goods and services — practice question
Javid is a firm that makes a range of luxury chocolates through batch production. Over the last year, profit has declined because competition has increased. To reduce costs, the Finance Director has proposed that the business introduces new technology into the production process. The Human Resources Director is uncertain whether workers would gain from the introduction of new technology.
(a)[2]
What does the term ‘batch production’ mean?
(b)[2]
Identify two advantages, other than cutting costs, that new technology could bring to the company.
(c)[4]
Identify and explain two reasons why the quality of chocolates could be important to this company.
(d)[6]
Identify and explain two problems that a fall in profit could create for the company.
(e)[6]
Do you think that bringing in new technology would benefit Javid’s workers? 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: “Products are produced in groups or blocks, with one group then followed by the next” …