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A manufacturing business is a cost leader in their industry - HSC - SSCE Business Studies - Question 10 - 2021 - Paper 1
Question 10
A manufacturing business is a cost leader in their industry. Which combination of features of the transformation process are they most likely to demonstrate? A. Lo... show full transcript
Worked Solution & Example Answer:A manufacturing business is a cost leader in their industry - HSC - SSCE Business Studies - Question 10 - 2021 - Paper 1
Step 1
Which combination of features of the transformation process are they most likely to demonstrate?
Answer
In analyzing the characteristics of a cost leader in manufacturing, we note that such businesses often focus on efficiency and economies of scale to minimize costs. This typically involves producing a high volume of products with low variety. By concentrating on a limited range of products, they can streamline their production processes, reduce the complexity of operations, and achieve cost savings on materials and labor.
Thus, the most appropriate answer is:
B. High volume, low variety