Efficiency and Productivity (AQA A-Level Business): Flashcards
📚Flashcards
Practise the cards
10 cards from this deck
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Practise the cards
10 cards from this deck
Excess capacity
Excess capacity
Production facilities are underused
Lack of capacity
Lack of capacity
Demand exceeds what business can produce
Marketing campaigns for excess capacity
Marketing campaigns for excess capacity
Promote products to attract customers & increase sales
Extension strategies
Extension strategies
Finding new uses for products or entering new markets
Rationalise production
Rationalise production
Permanently reducing scale of operations
Key issue when reducing capacity
Key issue when reducing capacity
Cannot easily be reversed, costly to rebuild
Outsourcing
Outsourcing
Transferring production work to external suppliers
Dynamic pricing
Dynamic pricing
Flexible prices based on market demand at particular time
How dynamic pricing works
How dynamic pricing works
Prices rise when demand high, fall when demand low
Businesses using dynamic pricing
Businesses using dynamic pricing
Airlines, hotels, ride-sharing apps