Making Operational Decisions | Edexcel GCSE Business (1BS0)

Making Operational Decisions

62 questions
4 subtopics
Paper 2
Paper 2

Making Operational Decisions is examined in Paper 2, Building a business (Theme 2).

It covers business operations and production processes, working with suppliers, managing quality and the sales process.

Sample questions from Making Operational Decisions

Answer each one closed book first, then open the answer.

Business operations and production processes

What are the advantages and disadvantages of batch production?

Show the answer
Batch production offers some variety while keeping unit costs below those of job production. Machines stand idle while they are reset between batches.
Business operations and production processes

Which production process would suit a small bakery making several kinds of bread each day?

Show the answer
Batch production suits the bakery, as it can make one type of loaf and then switch to another. Demand for each type is too small for flow production.
Working with suppliers

What is the reorder quantity?

Show the answer
The reorder quantity is the amount of stock ordered each time. The reorder quantity usually equals the maximum stock level minus the buffer stock.
Working with suppliers

What is procurement?

Show the answer
Procurement is finding and buying the goods and services a business needs from suppliers. Good procurement secures the right quality at the right price and time.
Managing quality

What are the drawbacks of quality assurance?

Show the answer
Quality assurance needs staff training and investment in systems, which is costly to set up. Standards may slip if staff are poorly trained.
Managing quality

How does quality give a business a competitive advantage?

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A reputation for quality attracts customers and builds loyalty. A business known for quality can charge a higher price than its rivals.
The sales process

How can a business engage with its customers?

Show the answer
A business can use social media, loyalty schemes and personalised offers to keep in touch. Friendly, attentive staff also build engagement in store.
The sales process

What is customer service?

Show the answer
Customer service is how a business looks after its customers before, during and after a sale. Good customer service meets or exceeds customer expectations.

The 4 subtopics

One subtopic is one session. Work down the list.

Subtopic	What it covers	Questions
Business operations and production processes	Job, batch and flow production with their advantages and disadvantages, labour productivity, how production choices affect price, and the benefits and costs of new production technology.	16
Working with suppliers	Bar gate stock graphs, buffer stock, reorder levels, lead times and reorder quantities with worked examples, just in time stock control, procurement and logistics.	16
Managing quality	Quality control and quality assurance, managing quality in services, how quality affects costs and competitive advantage, ISO 9001, and using customer complaints to improve.	15
The sales process	Product knowledge, speed and efficiency of service, customer engagement and feedback, post-sales service, and why good customer service builds loyalty, especially for small shops.	15

Making Operational Decisions is 62 of the 672 questions in the guide.Get the guide, £7

How the guide is worked

Answering a question from memory stores it far better than reading the answer again. The guide runs that as a fixed procedure on one subtopic at a time, about twenty minutes a session.

Step 1 · Closed book
Cover the answers. Work through one subtopic and write down what you can. Leave blanks where you have nothing.
Step 2 · Open book
Go back to the top. Read each printed answer and write it out in full, including the ones you had right.
Step 3 · Closed book again
Same questions, same order, from memory. The gap between pass one and pass three is the session result.

Read the full method, the return schedule and the research behind it.