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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 key benefit of using batch production at KFC is increased efficiency. By frying several chicken portions at the same time, KFC can significantly boost productivity compared to individual production methods. This efficiency allows KFC to serve more customers in less time, which is critical in a fast-paced restaurant environment. Additionally, batch production enables KFC to customize orders, allowing them to prepare specific variations of dishes without the limitations of continuous flow production.
Step 2
Analyse the impact on KFC of providing poor customer service.
Answer
Providing poor customer service can have several detrimental impacts on KFC. Firstly, customers may choose to turn to rival fast-food chains, such as Burger King, eroding KFC's market share. This shift can harm KFC's brand reputation, particularly if customers associate the brand with poor service experiences.
Moreover, declining customer loyalty can lead to decreased revenue, as repeat customers are crucial for maintaining a stable income stream. Consequently, KFC may lose its competitive advantage, making it harder to attract new customers and retain existing ones.
Additionally, ongoing service issues could lead to price reductions in a bid to attract customers, further squeezing profit margins. Overall, the cumulative effect of poor service can significantly undermine KFC’s market position and financial health.