Business 7115 · O Level · Production of goods and services
Production of goods and services — practice question
GKK manufactures plastic bottles for a wide variety of products, ranging from food products to chemicals. Its raw materials are purchased 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 protect the environment. The Operations manager commented: ‘The Government may meet one of its objectives, but what effect will this have on GKK? This is a competitive market, so prices matter.’ He aims to raise efficiency and is planning to use lean production.
(a)[2]
What is meant by the term ‘chain of command’?
(b)[2]
Identify two Government economic objectives.
(c)[4]
Identify and explain two benefits to GKK of improving efficiency.
(d)[6]
Identify and explain two ways in which new legal controls to protect the environment might 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: “An organisational structure that indicates how orders are passed from senior management to lower levels” …