Page 425 - Cambridge IGCSE Business Studies

IGCSE Business Studies Student CD-ROM

Technology and the production process

Increases
productivity

Reduces unit
Advantages
costs
Improves quality

For business Often very
expensive to
purchase

Needs to be
Disadvantages updated as new
technologies are
developed
May increase
training costs

Lower prices

Advantages Better quality
products with
more features

For consumers Products
New technology become out-
in the dated more
production quickly
process Disadvantages
Can be more
expensive to
repair if they
develop a fault

Work is easier
and simple
boring tasks are
completed by
machines
Advantages Businesses using
the latest
technology are
often more
successful so
provide greater
job security
For workers
More capital
intensive −
reduces the
need for workers
resulting in
redundancy
Disadvantages
Work becomes
less interesting
and requires less
skill which can
demotivate
workers

© Cambridge University Press 2014 IGCSE Business Studies Section 4 – Mind maps 3