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4.1. The nature of operations
A subsection of Business Studies, 9609, through 4. Operations management (AS Level)
Listing 10 of 30 questions
Belted Up (BU) Belted Up (BU) is a manufacturer of hand-made leather belts for clothing. The business makes a range of sizes and colours of belts using batch production. Table 2.1 shows some details of BU’s best-selling belt, the Classic. The price of each Classic belt is $11. Table 2.1: Details of BU’s Classic belt Size Colour Number of belts sold in 2020 (000) Small Brown Medium Brown Large Brown Small Black Medium Black Large Black BU has an objective of internal growth. The directors of BU have decided to manufacture a new belt that can be reversed, so that it is black on one side and brown on the other. This could affect the amount of inventory held by BU and its liquidity. The directors have proposed process innovation so that the new belt can be produced by machine. The factory manager has been promoted within the business and a new factory manager is needed. An extract from the job advertisement for this vacant position is in . Job title: Factory manager We are looking for a factory manager to drive the process innovation needed to develop the production of belts. The factory manager will manage all of the 70 production workers and 8 supervisors in the factory. The manager will also meet regularly with the worker representatives. The factory manager will also manage the inventory and be responsible for the warehouse operations. : Extract from the job advertisement for the new factory manager Define the term ‘liquidity’ (line 15). Explain the term ‘internal growth’ (line 13). Refer to Table 2.1 and any other relevant information. Calculate the total revenue from selling the Classic belt in 2020. Explain one advantage and one disadvantage to BU of selling a range of sizes and colours of the Classic belt. Analyse two disadvantages to BU of the proposed process innovation. Evaluate the usefulness of Mintzberg’s roles of management for BU when recruiting a new factory manager.
9609_s21_qp_23
THEORY
2021
Paper 2, Variant 3
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Questions Discovered
30