Explain two benefits and two drawbacks of specialisation within a manufacturing process.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2021). The mark or mark type is shown in brackets.

1. [1] (a) Award 1 mark for each benefit/drawback (maximum of 4).
2. [1] (a) Award a maximum of 1 additional mark for each explanation of why it is a benefit/drawback of specialisation within a manufacturing process.
3. Relevant benefits might include:
4. [1] (a) Higher quantity produced / higher output – increased sales
5. [1] (a) Production workers are trained in one task – quicker to train / cheaper to train workers
6. [1] (a) Quicker to produce output / increased efficiency – as less time taken by workers moving between tasks in the factory
7. [1] (a) Performing only one task makes worker become a skilled expert / employee specialises in what they are good at – more efficient in that task / more job satisfaction
8. [1] (a) Easier to use machinery to perform tasks – speeds up production
9. [1] (a) Fewer mistakes made – less wastage / fewer customer complaints / reduced costs of production
10. Relevant drawbacks might include:
11. [1] (a) Production workers may become bored doing the same task repeatedly – may become less efficient and slow down production
12. [1] (a) Workers less motivated / less job satisfaction – more likely to leave the business
13. [1] (a) Workers cannot cover for absent colleagues – manufacturing may halt or slow down
14. [1] (a) Worker may find it difficult to find alternative employment – as only trained/skilled in one task
15. [1] (a) Lose other skills – as only use skills for one task
16. [1] (a) For example: The production workers are trained in only one task (1) therefore it takes less time to train new recruits to the factory. (1)
17. 1(b) Level 3 [9-12] Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of at least two problems. Well-justified conclusion. Candidates discussing all three problems in detail, in context and with a well-justified conclusion including why the alternative problems were rejected should be rewarded with the top marks in the band.
18. 1(b) Level 2 [5-8] Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of at least one problem. Judgement with some justification / some evaluation of choices made. Candidates discussing two or more problems in detail and applying it to the case should be rewarded with the top marks in the band.
19. 1(b) Level 1 [1-4] Limited application of knowledge and understanding of relevant business concepts. Limited ability to discuss the problems with little/no explanation. Simple judgement with limited justification / limited evaluation of choices made. Candidates outlining all three problems in context should be rewarded with the top marks in the band.
20. 1(b) Level 0 [0] No creditable response.
21. Relevant points might include:
22. Cultural differences
23. • There may be different preferences for types of soap powder in foreign markets – SSM may need to adapt their soap powders to the ones required for this market – increase in development costs
24. • May need to adapt packaging/marketing to cope with differences in culture/language -this will increase total costs
25. • May not be able to compete with existing suppliers of soap powder who recognise cultural differences and how this impacts on choice – customers brand loyal to locally produced products
26. Lack of knowledge
27. • SSM may not be aware of shopping habits of customers – may need to use different distribution channels to large retailers which it is familiar with – may be difficult to become established with retailers in foreign markets
28. • SSM may not be aware of consumer trends – such as preference for environmentally friendly products
29. • SSM may lack knowledge of competitors – not aware of competitors brands of products to wash clothes and pricing - may find it difficult to keep prices low enough to enter new market if competitors are well established
30. • Lack of knowledge of government legal controls about products
31. Import restrictions
32. • It there are tariffs on imported soap powder then this will cause the price of SSM soap powder to increase – becomes less competitive than domestic brands of soap powder - lower sales
33. • If there are quotas on imported soap powder, then this will restrict the amount of soap powder SSM can export – limits sales in this market – likely to lead to an increase in prices if limited supply of foreign soap powder
34. Conclusion
35. • Cultural differences may be the greatest problem, as local customs may not include using soap powder similar to SSM soap powder for washing clothes. Lack of knowledge can be overcome with market research and import restriction can be overcome by having production facilities in the country.
36. • Lack of knowledge may have the greatest effect as it is difficult and expensive to overcome and SSM will need to research and adapt distribution channels to the foreign market if consumers often do not use large retailers.
37. • Import restrictions such as tariffs or quotas cannot be got round as they are imposed by the government in the other country as goods enter their market. They are likely to make SSM's products uncompetitive in the foreign market and therefore have few sales of its soap powder.