Zoff is a large engineering company. It manufactures a wide range of products from bicycles to washing machines, mainly using batch production methods. The company has grown rapidly but its profits are falling. Following the dismissal of the Managing Director, the company has announced that a new Managing Director will be recruited internally. A spokesperson said: ‘Our objectives have to change. Rather than growth, we will focus on improving quality whilst at the same time try to improve our competitiveness.’ What is meant by ‘dismissal’? Identify two advantages to Zoff of using internal recruitment for the new Managing Director. Advantage 1: Advantage 2: Identify and explain two ways (other than improving quality) that Zoff could use to improve its competitiveness. Way 1: Explanation: Way 2: Explanation: Identify and explain two ways in which Zoff might achieve quality production. Way 1: Explanation: Way 2: Explanation: Do you think Zoff should change its objectives? Justify your answer.

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THEORY

2015

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Autovision is a private sector business based in Europe. It makes specialist glass for cars and benefits from economies of scale. Quality assurance is important to Autovision. The Operations Director has introduced new technology in recent years which has changed the production process. ‘It was expensive to buy, but we have 20 fewer workers than 3 years ago and can now make many different designs.’ Autovision sells 50% of its products in Asia. The Operations Director thinks Autovision should relocate to Asia. Identify two features of a private sector business. Feature 1: Feature 2: What is meant by ‘quality assurance’? Identify and explain two economies of scale from which Autovision could benefit. Economy of scale 1: Explanation: Economy of scale 2: Explanation: Identify and explain two ways in which new technology could have changed production methods at Autovision. Way 1: Explanation: Way 2: Explanation: Do you think Autovision should relocate? Justify your answer.

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THEORY

2016

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Globalisation has changed the way many businesses operate. VKW makes cell phones. It uses just-in-time inventory control. VKW exports 40% of its products. It imports most of its raw materials to help reduce total costs. All 800 of VKW’s employees understand the importance of quality assurance. The Operations Director has asked all suppliers to ensure they do not use child labour. She is also concerned that many governments are planning to increase import controls such as quotas. Define ‘globalisation’. State two advantages to a business of using quality assurance. Advantage 1: Advantage 2: Outline two ways VKW might be affected by increased import controls. Way 1: Way 2: [ 1 24 Explain one advantage and one disadvantage to VKW of using just-in-time inventory control. Advantage: Explanation: Disadvantage: Explanation: Do you think that businesses should be concerned about ethical issues such as child labour? Justify your answer. 1 24

0450_m20_qp_12

THEORY

2020

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Viktor is starting up a business as a photographer. He will be a sole trader. Quality control will be important. Viktor plans to use sampling when carrying out market research. There are legal controls which could affect his marketing strategy. Viktor will employ 5 photographers. He knows there are many ways to motivate employees. Identify two ways legal controls could affect marketing strategy. Way 1: Way 2: Define ‘quality control’. Outline two reasons why Viktor might use sampling when carrying out market research. Reason 1: Reason 2: [ 1 13 Explain two disadvantages to Viktor of operating as a sole trader. Disadvantage 1: Explanation: Disadvantage 2: Explanation: Explain two ways a service business could motivate its employees. Which would be the best way to use? Justify your answer. 1 13

0450_m23_qp_12

THEORY

2023

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IRKAM is a company that produces high quality doors for hotels and offices. The company currently uses job production. The Managing Director, Abdul, believes that quality control is important. He is looking for ways to increase productivity. All workers receive on-the-job training. Abdul is thinking of including off-the-job training as well. What is meant by ‘productivity’? What is meant by ‘on-the-job training’? Identify and explain one advantage and one disadvantage of off-the-job training for IRKAM. Advantage: Explanation: Disadvantage: Explanation: Identify and explain two reasons why quality control might be important to IRKAM. Reason 1: Explanation: Reason 2: Explanation: Over the past three years there has been a large increase in demand for IRKAM’s doors. Do you think job production is still the best method of production for IRKAM? Justify your answer.

0450_s12_qp_11

THEORY

2012

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DWT makes solar panels in country Y. This is a low-cost country which is experiencing rapid economic growth. DWT’s production method makes use of specialisation. All 120 of DWT’s employees know that ensuring quality production is important. DWT imports some of its raw materials. The Government of country Y plans to introduce import tariffs of 50%. DWT’s Managing Director said: ‘This decision will affect all of our stakeholders. Why do governments introduce trade restrictions such as import controls?’ Define ‘specialisation’. Identify two reasons why a government might introduce import controls. Reason 1: Reason 2: Outline two ways DWT could try to ensure quality production. Way 1: Way 2: 1 13 Explain one objective of each of the following stakeholder groups of DWT. Customers: Pressure groups: Do you think that all businesses will benefit from operating in a country which is experiencing rapid economic growth? Justify your answer. [ 1 13

0450_s20_qp_12

THEORY

2020

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KCL manufactures paper which is used in the production of newspapers and books. KCL holds a high level of inventory and buys all its raw materials, including wood, from local suppliers. Quality control is important. The Operations Director is considering ways to increase efficiency in the factory. Pressure groups are trying to influence KCL’s decisions to ensure that the business does not create more external costs than external benefits. Define ‘quality control’. Identify two ways a pressure group might try to influence business decisions. Way 1: Way 2: State four benefits to a business of increasing efficiency. Benefit 1: Benefit 2: Benefit 3: Benefit 4: 1 10 Explain one external cost and one external benefit that may be created by KCL’s business. External cost: Explanation: External benefit: Explanation: Explain two factors a manufacturing business should consider when deciding how much inventory to hold. Which factor is likely to be the most important? Justify your answer. [ 1 10

0450_s23_qp_13

THEORY

2023

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SWB is in the secondary sector. It produces 150000 wooden bookcases each week using batch production. SWB sells all its output to one customer. Quality control is important. SWB has 240 employees, of which 100 are part-time workers. SWB’s managers use noticeboards around the factory and meetings with employees every month to help reduce communication barriers. The Operations Manager is considering introducing just-in-time inventory control to reduce the amount of waste. Define ‘secondary sector’. Identify two factors a business should consider when deciding whether to introduce just-in-time inventory control. Factor 1: Factor 2: Outline one advantage and one disadvantage to SWB of using quality control. Advantage: Disadvantage: 1 10 Explain two possible communication barriers that might exist at SWB. Communication barrier 1: Explanation: Communication barrier 2: Explanation: Do you think it is a good idea for a business to have only one customer? Justify your answer. [ 1 10

0450_w21_qp_12

THEORY

2021

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TBX manufactures high-quality steel which is used to build railways. The method of production used allows TBX to benefit from economies of scale. The business holds a high level of inventory including iron ore. The Managing Director knows business activity could have an impact on the environment and is considering ways the business can contribute to sustainable development. Identify two ways business activity could have an impact on the environment. Way 1: Way 2: Identify two ways a business could contribute to sustainable development. Way 1: Way 2: Outline two possible economies of scale TBX might benefit from. Economy of scale 1: Economy of scale 2: 1 11 Explain two possible problems for TBX of holding a high level of inventory. Problem 1: Explanation: Problem 2: Explanation: Do you think quality control is the best method for a manufacturing business to use to achieve quality production? Justify your answer. [ 1 11

0450_w23_qp_12

THEORY

2023

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