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IGCSE Business Studies Student CD-ROM

Six-mark questions

1 Sweet Sensation (SS) is a manufacturer of candy. It uses batch production methods. In recent months it has not
been able to make enough of its most popular product, Candy Bears. The Operations Director is considering
introducing flow production methods for Candy Bears. The Finance Director is concerned at the level of
investment that this will require. Workers are also concerned about this proposal.

a Identify and explain one advantage and one disadvantage to SS of batch production methods.
b Do you think SS should introduce flow production for Candy Bears? Justify your answer.

c Identify and explain two reasons why you think workers at SS are concerned about the Operation
Director’s proposal to introduce flow production.

2 Meesum Electricals (ME) is a manufacturer of consumer electrical goods. It has two factories in Country Z.
ME is a very successful company with a strong brand image in Country Z. Labour costs in Country Z have
been rising recently. The owners are thinking of relocating one of their factories to Country Y. Country Y is
a low labour cost economy with a good supply of skilled and semi-skilled workers. ME currently sells 35% of
its output in Country Y. The Operations Director is concerned about the effect any relocation might have on
quality.

a Do you think ME should relocate one of its factories to Country Y? Justify your answer.
b Identify and explain one benefit and one limitation to ME’s workers if the company decides to relocate one
factory to Country Y.

c ME decides to relocate a factory to Country Y. Identify and explain two methods ME could use to ensure
quality in the new factory meets consumer expectations.

© Cambridge University Press 2014 IGCSE Business Studies Section 4 – Revision questions 3