Fichas
Business Section 5
Fichas del conjunto (12)
- 1Advantages of efficiency and minimize costs- Access to global marker
No need to invest in shop premises, branch managers, staff.
- Stock displayed virtually, reducing need for premises and carrying of stock (reducing costs)
- Transactions are automated
- Invoices and receipts can be sent through email (Reduces printing costs)
- Reducing labour costs via website support
- Interactive areas for customer feedback (cutting market research costs) - 2Advantages of selling products online- Increased efficiency
- Fewer resources
- More profitable due to lower costs
- More competitiveness due to lower costs
- Staff needed is a lot less
- Great convenience for customers - 3Disadvantages of selling products online- Costs for designing and maintaining an online site
- Assuring the company has a prominent position in Google
- Additional packaging / delivery costs and transportation
- Premises needed for dispatching goods - 4Chinese Supplier - Manufactoring- Manufacturing; the difference between the selling price and the cost of materials is the price used to make it.
- Value added is the increase in worth, for example; BMF do not have to make the T-Shirts themselves - 5Buying from the Chinese Supplier- Good for globalization
- Provides an opportunity for international trade
- However there is a change in exchange rate
- China is one of the BRIC economies; less industrialization and lower living standards
- Provides jobs for locals and raises their standard of living
- They have the ability to have a high rate of economic growth and industrialization making them open to foreign investment
- The packages will go through imports which will need to be passed through tariffs
- Outsourcing production is more difficult to control quality; Management and control production
- Travelling over longer distances could cause delays - 6Exchange Rates for the Chinese Supplier- Change in exchange rate could affect sales and revenue
- If the pound strengthens towards the Yuan, then costs would reduce and profits would increase
- If the pound becomes weaker, costs increase and the profit is reduced
- The greater the change in rate of exchange between the pound and the yuan, the greater number of T-Shirts buys from China having a bigger impact on BMF's profits and costs. - 7Use of flow production- Flow production is the continuous production of a large quantity of identical items
- Involves a large investment in specialist machinery and good for BMF - 8Advantages of flow production- Lower unit costs and labour costs are low as the process is automated
- With large quantities produced, there is maximum opportunity for the business to benefit from economies of scale
- The Chinese supplier can offer lower prices than competitors and higher sales and also higher profit margins
-Improved quality and increased productivity as there are no delays in processes as it is automated and the process is programmed and specialized to make products at a high quality
- Products can be made in a shorter space of time and mass produced which can maximize sales and capacity utilization hence reducing unit costs - 9Disadvantages of flow production- Can be expensive to set up
-Requires careful planning
- Requires production line speeds to be considered setting up optimum rates
- Can be inflexible
- Low job satisfaction and if one part of the line breaks down, the whole line is affected - 10Use of Batch Production- Where a large or small quantity of the same item is produced at the same time
- Workers specialize in a particular process or job - 11Advantages of batch production- Allows for a range of products meeting different customer requirements
- Helps maximize sales and marker share
- The workers are specialized and therefore are quicker and make fewer mistakes
- Lower labour costs
- Unit material costs are lower than job production because there is a scope for economies of sale
- Leads to greater competitiveness over price or higher margins - 12Disadvantages of Batch production
Información
- Descripción
- GCSE Business Studies Fichas sobre Business Section 5, creado por Abhishek Niraula el 20/03/2017.
- Creado por
- Abhishek Niraula
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