TRB is a small business in the secondary sector. TRB assembles computers. All components, except for the battery and glass for the screen, are imported from other countries. 40% of its products are exported. Many of its competitors are relocating to low cost countries. TRB's Operations Director thinks the opportunities of globalisation may be greater than the threats for TRB. She is looking at ways to improve efficiency in the factory. One option is to introduce lean production methods.
- (a)TRB is in the secondary sector. Identify the other two classifications of business sector activity. Classification 1: Classification 2:[2]
- (b)Identify two ways to measure the size of a business. Way 1: Way 2:[2]
- (c)Identify and explain two methods of lean production that TRB might use. Method 1: Explanation: Method 2: Explanation:[4]
- (d)Identify and explain two possible benefits to TRB of improving efficiency. Benefit 1: Explanation: Benefit 2: Explanation:[6]
- (e)Do you think there are more opportunities than threats from globalisation for TRB? Justify your answer.[6]
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.
- [1] primary
- [1] tertiary
- [1] Sales value OR value of output OR revenue OR income
- [1] (Value of) capital employed
- [1] Value of balance sheet
- [1] Market share
- [1] Number of employees
- [1] Number of outlets
- [1] (Volume of) output OR number of services OR number of customers
- [1] Kaizen OR continuous improvement [k]
- [1] when making computers [app]
- [1] Just in time inventory control [k]
- [1] for ordering batteries [app]
- [1] Reorganize layout [k]
- [1] to help improve efficiency [app]
- [1] Cell production OR autonomous team working [k]
- [1] Kanban [k]
- [1] in the factory [app]
- [1] Waste reduction [k]
- [1] Reduce average costs [k]
- [1] of making computers [app]
- [1] so may be able to sell them at a lower price [an]
- [1] Less mistakes [k]
- [1] improving reputation [an]
- [1] of this small business [app]
- [1] Less waste [k]
- [1] of imported parts [app]
- [1] reducing amount they need to buy [an]
- [1] Fewer workers needed [k]
- [1] helping reduce (labour) costs [an]
- [1] Increased output OR quicker production [k]
- [1] Better able to compete [k]
- [1] which is important for a small business [app]
- [1] Able to export more OR access to wider markets OR more sales [k]
- [1] than 40% [app]
- [1] helps spread risk [an]
- [1] Cheaper labour OR materials [k]
- [1] such as glass [app]
- [1] which could lower total cost [an]
- [1] Easier to relocate to other countries [k]
- [1] like its competitors [app]
- [1] Become better known OR build brand image [k]
- [1] Increased competition [k]
- [1] for computers [app]
- [1] could result in lower sales OR revenue [an]
- [1] Loss of employees to other companies OR wider pool of potential employees [k]
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