Explain two advantages of using specialisation when producing SSE's products.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2023). The mark or mark type is shown in brackets.

1. [1] Increases efficiency/productivity – it allows the use of more machinery and technology in the production process – increases output per production employee
2. [1] Time is saved during the production process as workers do not need to move around between tasks on the production line – improves the use of space in the factory so can fit in more production lines into the limited space
3. [1] Helps keep (unit) costs low – only performing one task makes workers quicker - allowing lower prices to be charged
4. [1] Cheaper to train each employee – as production employees are trained in only one task
5. [1] Increased total output produced – potentially increasing sales and revenue
6. [1] Less waste as keep repeating the same task which may lead to fewer mistakes being made
7. [1] Higher quality – as workers become more skilled at one particular task
8. [3] For example: Increases efficiency (1) as it allows the increased use of machinery and technology in the production process (1) so the output of safety helmets can be increased (app). This increases output per production employee (1).
9. [App] Application might include: sport helmets; bicycle riding; cricket; skateboarding; flow production; operated successfully for 30 years; one large factory; production workers are specialised in one task; sports safety industry; different sports.
10. [ADV Primary] It is up to date about the different sports that may be popular in other countries – for example cricket helmets may need to be adapted to local styles
11. [ADV Primary] Aware of current specific customer needs in different countries - it is planned and carried out to gather specific information relevant to sports helmets – will gather the opinions of potential customers and more likely to meet their needs
12. [ADV Primary] It will be focused on the specific trends in sports played in these countries
13. [ADV Primary] It will not be available to competitors
14. [DISADV Primary] May be biased particularly if interviewers are not objective when carrying out the interviews – could ask leading questions that influence the answers given
15. [DISADV Primary] It can be expensive especially if using focus groups or interviews as specialist market research staff will need to be employed to carry out the research
16. [DISADV Primary] It may take time to carry out as questionnaires amongst bicycle riders will take time to give out as they may be spread out across a country - the results will need to be gathered and then the results analysed
17. [ADV Secondary] Often much cheaper than primary research because the data on people riding bicycles in that country is already collected
18. [ADV Secondary] Can be used to help assess the total size of the market for cricket helmets in a country - and would not be available using primary research – so SSE could estimate the likely total demand for their helmets across the new markets in another country
19. [ADV Secondary] Secondary sources such as newspapers could help SSE assess the economic state of the potential new markets - to see if demand is likely to grow or be static - whether it is worth entering the new market if the economy is not growing
20. [ADV Secondary] It is usually quicker to gather than primary research
21. [DISADV Secondary] The data collected on skateboarding may be out of date therefore it will be of little use to SSE when entering a new market as the data is likely to have changed
22. [DISADV Secondary] The data is available to competitors - so SSE will not gain any advantage over existing competitors in the new markets
23. [DISADV Secondary] The data will have been gathered for another purpose – it may not fit the needs of SSE research so it will be of less use and not answer their research needs about the new markets
24. [JUS] SSE should use primary market research as the data gathered will be specific to the new sports helmets in the different countries so SSE will have more accurate data on the potential for sales in the new market and whether it is worth entering that market. Secondary market research is likely to provide data that is out of date and hence will be of little use to SSE in deciding if there is a sufficiently high demand for its products to be worth entering this market.
25. [JUS] SSE should use secondary market research as it cheaper than primary market research. SSE are considering entering several new markets selling cricket helmets in other countries so the expense of the research in each country will need to be kept low. Secondary market research will provide data much quicker for SSE to decide if the market is worth entering.