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4 (a) Outline one benefit to KFC of using batch production in its restaurants - Edexcel - GCSE Business - Question 4 - 2020 - Paper 1
Question 4
4 (a) Outline one benefit to KFC of using batch production in its restaurants. (b) Analyse the impact on KFC of providing poor customer service.
Worked Solution & Example Answer:4 (a) Outline one benefit to KFC of using batch production in its restaurants - Edexcel - GCSE Business - Question 4 - 2020 - Paper 1
Step 1
Outline one benefit to KFC of using batch production in its restaurants.
Answer
One benefit of batch production for KFC is that it allows the cooking of multiple chicken portions at the same time. This efficiency increases the overall productivity in preparing food, ensuring that customers receive their orders faster, especially during peak hours.
Step 2
Analyse the impact on KFC of providing poor customer service.
Answer
Providing poor customer service can significantly impact KFC in several ways:
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Loss of Customers: If customers receive inadequate service, they may choose to buy from competitors like Burger King. This could lead to a decline in KFC's customer base.
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Brand Damage: Poor service might tarnish KFC’s reputation, especially if customers share their negative experiences on social media, which can deter potential new customers.
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Reduced Revenue: Losing customers ultimately affects KFC's revenue. With fewer customers, the sales volume may drop considerably.
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Inability to Premium Price: KFC may find it challenging to charge premium prices for their products if they do not meet customer service expectations, leading to lowered profit margins.
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Increased Competition: Competitors may capitalize on KFC's poor customer service by attracting customers who value service quality.
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Employee Morale: Poor customer interactions can negatively affect employee morale, leading to high turnover rates which incur additional training and hiring costs. Therefore, consistent poor service could ultimately create a cycle of decline for KFC.