Page 245 - Cambridge IGCSE Business Studies

Exam-style case study

1 a Identify and explain two reasons why quality is 3 a Identify and explain two examples of economies of
important to Sunshine Foods. scale which Sunshine Foods might have benefi ted
from as a result of growth over the past fi ve years.
First reason:
Example 1:
Explanation:
Explanation:
Second reason:
Example 2:
Explanation:
Explanation:
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[8]
b Do you think that quality assurance is the best way
of improving quality at Sunshine Foods? Justify b Do you think break-even charts are useful
your answer. to Sunshine Foods when launching a
new product such as Choco-pops?
[12]
Justify your answer. [12]
2 a Identify and explain one advantage and one
4 a Identify and explain two reasons why Sunshine
disadvantage to workers at Sunshine Foods of the
Foods should manage the level of raw material
directors’ decision to fi nance the investment for
inventories.
the introduction of fl ow production methods.
Reason 1:
Advantage:
Explanation: 243
Explanation:
Reason 2:
Disadvantage:
Explanation:
Explanation:
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[8]
b Do you think Sunshine Foods should introduce
b The Operations Manager wants to introduce just-in-time inventory management?
changes to improve productivity at Sunshine Justify your answer. [12]
Foods. Explain how each of the following might
help the Operations Manager achieve this objective
Total available marks 80
and recommend which one is likely to be the most
effective. Justify your answer.
Training:

Kaizen groups:
Automation:
Recommendation:

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