Business (9609) - Improving Analysis - Answer writing - AS/A Level

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[abdurrahmanmubasher]

3. If a business changes production method from batch to flow production, it will help business to increase rate of production and decrease average cost per unit, so as result business will be able to set more competitive prices which will lead business's competitors to lose their sales and market share.

[irismarek]

Just took paper 12!! This really helped, I gave "depends" of evaluation and " effects / consequences " for analysis and I think i did okay! TYSM

[shdow]

Scenario 2
Large amount of finance to purchase new machinery will help the business be more efficient and quicker in the production process, thus increasing the quality of the product and reduce faults, but this large amount of finance will probably take some time to pay back the loan since they will also spend money to maintain the machinery, and as result this will make the shareholders frustrated as they will get reduced dividends.

Scenario 3
Batch production to a business can beuseful as they produce products at batch, but changing it to flow production will help the business products to be more of good qualtiy as they will be produced step by step, thus making the business get more profit, and reduce the market share of their competitors.

Thank you very much for your videos sir, They are very helpful.

[rahulshyper]

2. The business obtained a loan to finance the purchase for a new machine. This will help the business to be quicker to attain the machinery instead of wasting time on saving up finance. However the business has to repay the loan back with interest which would reduce the profit. Therefore the shareholders may experience reduced dividends.

3. The business shifts to flow production from batch production. This allows the business to produce quicker as each unit passes through production stages independently without waiting for another unit. Which leads to respond to demand quicker, resulting in increased sales. Therefore reducing the market share of competitors.

Thanks a ton sir for teaching us to write an accurate analysis. Love from Bangladesh.

[itswhitestorm]

Scenario 2:

The business has obtained a large loan to finance the new purchase of this large machinery. This will decrease the profits made by the business. As they now have a new liability to pay off. Resulting in the shareholders of the business to make less money on their dividends.

Scenario 3:

The business has changed from the batch production method to the flow production method. This means that the overall efficiency of the production process will increase. As you would not have to wait for each product to go through each stage of the production process together as you would in batch production. Overall, this would be beneficial to the business as it could increase market share of your business and potentially reduces the market share of competitor businesses.

[gunnhooda]

1. The introduction of new training programs for the staff will increase and improve the skills of the employees as it will equip the employees with newer and more improved skills. This will in turn increase the labour productivity of the business as the labor will be able to better utilize their skills and this will increase the output of the business which in turn will increase the sales revenue for the business as they will be able to sell more of their products. This will also allow the business to quickly respond to market changes, for example, if there is a special order of a higher quantity. The business will be able to provide that quickly and also identify market gaps and also take advantage of them.
furthermore, the overall cost of the business will also start to fall, skilled employees will be less likely to make mistakes and waste resources, this in turn will reduce the level of wastage of the business, and average cost will fall, resulting in higher profit margins.

[ALLE]

Thanks for your time and devotion Sir🙏🏽
I really think that your videos will help a lot of students❤❤
GOD bless you abundantly 😇🍀

[HammadAli_]

Analysis was my weakest part in answer but now l can overcome it easily. Thank You Sir.

[kainerabot]

2. Business obtains a large amount of loan which leads to high interest that should be paid. At the end, this will reduce the profit for year leading to reduced dividends for shareholders

3. Adapts a flow production which leads to the busines enjoying economies of scale due to the use of machines. The low cost can result into the business being more competitive and charging a lower price, which will attract more customers and make more sales. As a result, competitors will lose market share.

Thank you so much Sir, now im more confident in my analysis

[gqy]

this vedio really helps me! thank you!🥰

[hanzaahmed]

One of the best evaluative video I have ever seen jazakallah sir Bilal kurd ❤️♥️

[abdurrahmanmubasher]

2. When a business obtains large amount of loan, it will lead to pay high interest rate on monthly basis which will increase costs of business, charging higher prices against competitive prices so business will lose sales leads to low profit, so as a result dividend will get reduce.

[bhavy]

3rd case
changing from batch to flow production will enable the business to produce huge quantiny of goods continuously which will help reduce the fixed cost per unit and even expericence higher economis of scale leading to lower cost per unit allowing them to either set compeetivive prices or improve profits.how ever the firm needs to ensure that an effiective lean production management production system is set to ensur the efficent and effective use of flow production also there will be a large sum of machinery required thus specialist will be required at all time to ensure any failures to machine are either prevented or resolved quickly, it will increase cost or even if existing employee is trained to do so it will cost at the beginiig, risk of automation will demotivaate employess but the trained employess will be motivate.
employees need to be motivate and given authority to perform TQM and have a quality control and assurance to prevent faulty goods and waste of resources.overall the decision can be fruitfull in long term if the management is flexible in delegation and motivation but managers need to ensure they do not have too much capital tied up in inventories as its possivle that the demand of products might flucitulate so makret research is necessary also promotion is to be done to ensure demand of good.

[zlatanzoot]

Thats amazing teaching skills … ur a juggernaut of a man in this field therefor your students would also be scintillating in near future ( did a bit of analysis in compliment too like just used the word 😜)

[ShahabUddin-zyfy]

This video is very helpful and now I'm able answer the analysis questions. Thankyou sir for such videos 💕

[waniakhan]

Bestest video for analysis! Waiting for evaluation now. 💪🏻

[zohashams]

2. The large amount of loan obtained will increase the business's liabilities. There will be a percentage of interest on the loan that will be charged as an expense to the business so the net profit is likely to decrease. As a result, lower dividends will be given to the shareholders.

3. The business's transition from flow to batch production will increase efficiency of the business as the production process is less time consuming larger quantity of products can be produced at a time so the average cost will decrease. This will lead to the business gaining a competitive edge over its competitors as the business is able to cater to more customers and respond to demand quicker at a lower cost so able to gain higher market share while competitors lose their market share.

i feel like in the third point, I have tried to merge too many points instead of going about one point. I do this a lot when i get carried away in my answer, please tell me if it's ok.
Thank you for these videos sir, they've been very helpful

[alifaisal]

thnx a lot for this ❤🤩
Still didn't know the whole thing about writing till level 4, and focusing the effect on business or shareholder
Have been writing till level 3 only and wondering why my marks got cut but no more Thanks to you ❤

Case C
2

2. Large amount of loan obtained will lead to the overall cost of business increasing, as a result the profit would also be reduced due to this, therefore shareholders would have reduced dividends

3. Business adopts flow production system as a result business's cost would be reduced due to cost per unit will be low in flow production than batch which will lead tou increased profit, therefore competitors would eventually loose market share

[ashenzenden]

2. Business obtains large amount of loan ->> The business invests the loan funds to purchase machinery in order to increase the output of the business -> The retained profits of the business lowered due to the interest payments the company is having to make to pay off the loan that it incurred to purchase machinery -> Shareholder dividends have lowered, acting as a disincentive for potential shareholders to invest into the business.

[yashasvimakwana]

Case 2-
As a result of a large amount of loan obtained, debts of the business would increase which would lead to them focusing on paying off the debts first rather than distributing the revenue to the shareholders, so, there would be a decrease in the dividends paid to the shareholders.