1. GCSE Revision

2. FUNCTION
ECONOMY OF
MANUFACTURE
AESTHETICS
The trade-offs involved in designing new products can be shown in the triangle. As Craig tried to make his boot perform better, it became more expensive to produce and looked uglier.

3. What is stock?
Raw materials
Work in progress (part made products)
Finished products
List the problems a firm may encounter with poor stock control;
Too much stock
Costs will rise – warehouse costs
Stock may go out of date
Too little stock
May run out of stock – miss orders, poor reputation

4. Warehousing
Warehouse Costs
Rent / mortgage
Utilities – gas, electricity, water bills
Depreciation
Store person's wages
Money tied up in stock
Security
Insurance
Re-Order Costs
Purchasing more frequent smaller amounts will result in higher purchase cost
Higher transport costs
Handling costs
Risk of running out of stock

5. TQM
Total Quality Management is the commitment by all employees to providing quality products. The concept relies on all employees following a written procedure. Employees are encouraged to make suggestions feeding back their ideas on how the process could be improved; this is known as continuous improvement. The ultimate objective is to achieve zero defects, no faulty goods at all. Good quality components and machines are used. Everyone should ensure their work is done correctly before passing it on. TQM uses the idea of quality assurance.
When staff are initially trained, procedures written and new machinery purchased, costs are likely to rise. However, as wastage falls and hidden costs are reduced such as a firm getting a poor reputation or customers not returning because they have had poor quality products, then costs should start to fall in the long term.

6. Quality Control Checks are made on completed products.
It takes place after the event.
Inspects in Quality.
X - could be a lot of waste
X - not always possible to put fault right

7. Quality Assurance
Quality components or raw materials are used in the production process.
Everyone follows a written procedure.
Employees are responsible for their own work.
Focuses on how the products are produced
Prevents failure – Right First Time
 - less wastage

8. To know what is meant by customer service
“Customer service is the ability of an organisation to recognise and consistently meet the needs of its customers”
The role of everyone in the organisation is to meet CUSTOMER NEEDS AND EXPECTATIONS

9. How could a supermarket meet its customers' needs?

10. Customer Meeting Needs Elderly Customers
Provide Seating at checkouts, Packing bags, taking shopping to the car,
Parents and Infants
Designated car park spaces, Different trolleys, Priority wide aisle checkout, Baby Changing facilities,
Customers with mobility problems
Disabled parking spaces, Wheelchairs available, Adapted trolleys, electric scooters, Wide aisle checkout , Open doors
Deaf or heard of hearing
Loop system, leaflets, Speak slowly, Write it down,
Blind or partially sighted
Personal shoppers, guide dogs , lead gently, braille,

11. Firms such as Sainsbury’s attempt to meet customers’ needs in order to gain repeat purchase.

12. Answer Prompt a) Why do most firms attempt to create customer loyalty?
Start with a killer first sentence – define repeat purchase
How do firms attempt to gain repeat purchases?
Why are existing customers so important for a new business?
Give some examples
Conclude – what are the advantages of having loyal customer and repeat purchases?

13. Define the following terms;
Tariff –
Quota –
Protectionism –
Subsidy -
Tariff – a tax on imported goods
Quota – a physical limit that is put on imported goods
Protectionism – tariffs and quotas used by a country to protect its own firms
Subsidy – where a government gives money to a firm to help it lower its costs

14. Ethics?

15. Ethics?

16. Ethics
Write down 5 ways a firm could be ethical (can you give real examples)?
Write down 5 ways a firm may act unethically (can you give real examples)?

17. 1. Is it morally correct for firms such as Nike paying a dollar a day to workers making clothes in Asia acceptable (create a balanced argument)?
For
Creates jobs
New skills
Probably pay above the local wage rate and offer better conditions than the local factories
No one is forced to take the jobs – locals in the countries often want to work for Nike
Against
Pay a $ a day, often for a 10 hour day, whilst giving Tiger Woods a $100 million sponsorship deal – is that morally correct?
Often move to countries where they are taking advantage of tax breaks and often lower health and safety standards and less strict labour laws.
Expensive premium priced product, but low wages! Morally correct?

18. India and China are growing at around 10% per year whist the UK economy isn’t. They have very large populations and their businesses are expanding? What are the threats and opportunities for UK businesses? Advantages and disadvantages.
Design an answer plan;
Paragraph 1
Define economic growth –
Threats to UK business ;
Paragraph 2
Opportunities for UK business;
Conclusion

19. £6.11 48 hours 4 weeks Employment Laws 13 weeks
What is the maximum working week?
Which of the following is the correct minimum wage?
How many weeks a year holiday is a worker entitled to?
After how many weeks must a firm give a worker a written contract?
48 hours
£4.20
£5.05
£6.11
£6.11
4 weeks
13 weeks

20. How does the UK government and EU legislation impact on UK firms?
Bureaucracy and Red Tape means a lot of rules and regulations made by government that business have to follow.
There is complete free trade within the EU. UK firms can sell to any EU country without tariffs. Many countries in the UK have rich consumers e.g. France & Germany. However, all the firms from these countries can also sell their goods in the UK. Many UK firms, such as Rover have closed down due to competition from abroad. There is also free movement of people, hence UK firms can recruit workers from any EU country.
The EU and UK government imposes many laws on business e.g. Health and Safety legislation, taxation, Paternity (fathers given time off work when they have a baby) & Maternity legislation and minimum wage. All these increases the costs of business significantly making UK businesses less competitive when compared to firms from countries such as China

22. Write down 3 advantages and 3 disadvantages of economic growth for a country such as China?
Higher incomes
More jobs
Greater choice of goods
Cheaper goods
Disadvantages
More stress
More pollution
Adverse effects on the environment
Loss of local culture and traditional businesses