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.
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.
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.
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.
Some suggestions for scenario 3: If you’re going to mention flow production leading to greater profits, you need to link the chain accordingly. Like, businesses will get benefit due to lower costs of production (be it cheaper raw materials due to bulk buying or efficient machinery) and thus greater profit margins per unit sold. Or if you need to link market share, then you can mention that businesses can transfer this benefit of reduced per unit costs to consumers in form of lower prices, thus enabling them to switch from competing brands and competitors losing market share. Chains of analysis need to be conceptually linked. You have a great written expression and articulate really well. All the best! And thank you for your comment ☺️
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.
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.
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
@@bkbilalkurd thank you very much sir!😊did the business papers during the past weeks and answered just like how you said.. i couldn't have been more confident in the paper😊thanks again and i will keep you updated for the results!😊
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 😜)
1. A business obtaining a large amount of loan for the purchase of machinery can lead to efficient production of goods, thus raising output and preventing a lack of shortage, leading a more positive image in the eyes of consumers, therefore leading to the business having a good reputation, thus attracting more customers, leading to more sales which then generates more revenue and thus profit, and so the company can have a bigger market share and increase in size, leading to shareholders getting bigger dividends.
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.
me having my first business as level exam paper 1, i never do business before ( didnt do my igcse) sooo thank yiu so much for this if i get betterr result than my mock i willl update ahhaah
2 A business has decided to obtain a large amount of loan to finance the purchase of new machinery. Develop a chain of analysis of how this may affect the share holder A large amount of loan has obtained for which business has to pay huge interest this will increase expense of the business and this leads in the reduction of profits therefore the dividends which are paid from profits will reduce
3 )A business has decided to change its production method from batch production to flow production. Develop a chain of analysis of how this may affect competitors Flow production is capital intensive,this will reduce the cost of production and increase the supply of a business which will help business on decreasing its prices. This can attract more new customers and competitors will lose their market share
3. Adobting Flow production will lead to an increase in production in lesser time so their average cost per unit will decrease as a result they will be able to sell more units at a lesser price than their competitors as a result competitors will lose their market share.
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
Hello Zoha. Zoha, your analysis in the third point is really solid. But yes, what you can do is that since you’ve mentioned the business gaining a competitive edge over rivals, writing that competitors will lost market share may not be necessary anymore since you’ve also indicated that the business’ market share is likely to increase.
And since you have talked about the average costs being lowered, responding to demand quickly may be another argument in itself. You can just state that the business can charge relatively lower prices than competitors due to its costs being lower leading to ….
Arrrrry Sirrrrr, 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
Large amount of loan obtained lead to increasing interest rate therefore if loan are not used effectivly, the profit might need to use for paying the debt as a result reduced the dividends for shareholder.
Suggestions: Rather than mentioning increasing interest ‘rate’ write ‘payments’ Profit will be used in the payment of interest regardless whether loans are used effectively or not Which will result in less amount to be paid in form of dividends
2. Obtaining a large amount of Loan will cause an increase in Interest rate which will lead to higher Expenses, so higher expenses mean lower profits, and as a result of lower profits shareholders dividends will be reduced.
Case1: A business has obtained a large amount of loan to finance the cost of new machinery. Develop a chain of analysis of how this might affect the shareholders. As a business obtains a large amount of loan its liability has increased. It has to pay back the loan with additional interest. Therefore, the payback amount will have to be deducted from the profit, which will reduce the business' profits of the year or the final profit. So, less finance and funds will be left with the business to pay dividends to shareholders. Thus, reducing the overall amount of dividends for shareholders. Case2 : A business has decided to change its form of production from batch production to flow production. How will this affect its competitors? As a business adopts a flow production method its efficiency and productivity will increase. It will also achieve economies of scale fuether reducing production costs. This will enable the business to reduce its selling price, which will potentially increase sales and profitability. As sales will increase, the business will gain market share. Therefore it will decrease competitors' sales.
If a large amount of loan is obtained, interest rates have to be paid on it which will decrease the net profit because interest rates are expenses of the business, as a result of low net profit, dividend paid to shareholders will decrease, which can lead to no further investment or shareholders selling their shares.
large amount of loan obtained would mean that firm gearing ratio has increases this will lead to worseing off the financial health of the business as a result of this share holders would be reluctant to buy more shares.
Very well done! You could also mention in between the majority of the profits will now be used in the payment of interests leaving lesser profits to pay out as dividends
Scenario 2: large amounts of loan is obtained which will result in increase in gearing as well as the interest paid will also increase which will result in less profit for shareholders and there will be reduction in dividends added well as it will not attract new investors.
for scenario 2: large amount of loan obtained will increase the business' non-current liabilities resulting in a hike in gearing ratio which means reduced retained earnings and hence, reduced dividends for shareholders. for scenario 3: a business adopts a flow production system which leads to better productivity and efficiency of operations which might mean better quality of product and increased sales and more customers which will eventually lead the competitors to lose market share. is this correct sir jee?
Large amount of loan will come with costs as well, this will result in finance cost of interest for the business, as a result of that total expenses will increase that will have an impact of a decrease in profitability of business, this will ultimately lead to a fall in dividends. Sir, good enough?
sir a small confusion , i have read that examiner wont entertain contradiction of points for instance in one para we say profits increases and then in nxt para we say it will decrease upto what extend this is true and what can be done to avoid it plz answer
The examiner expects students not to write mirror points. Like for example, if there are two locations with one being costly in terms of rent since it is in the city centre and the other being cheaper as it is in a remote location, it won’t be advisable to write arguments such as Location B has lesser rental costs which would reduce the fixed costs of the business and improve profits xyz however on the other hand location A has more rental costs which would increase the fixed costs and reduce profits. While the candidate will be awarded marks for discussion on location B, the argument on location A won’t be credited as it just reverses what was said above.
@@bkbilalkurd so i am currently in a2 If i write that increase motivation by delagation would result in worker being more involved in descion making and this would result in their effectiveness and therefore producing at low cost consequently high profits to be achieved by firms Now in second para i say that Delagation may involve costs that is workers might have no expertises in certain areas which means they making ineffective strategic descions this could result in bad reputation of business and low sales as a result low profits Here i am confused that i am contradiction will examiner allow this ?
@@abuzarghazan7870 this seems to be a well developed pragraph. And what you can do is when developing the drawback, try to link the end effect on something else rather than profits. Like increase in labour turnover or business losing its competitive edge. And it would be good to evaluate this point as well like much would depend on the existing skills of workers available in the business and the degree of responsibility they are prepared to undertake for delegation to be successful. Evaluation should only be shown in the question is of 12 marks
First chain of analysis Large amount of loan leads to increased annual expenses of the business in form of interest therefore profits of the business get shrinked and as a result dividends get reduced for the shareholders Second chain of analysis Business adopts flow production thus there cost of production gets lowered due to achieving economies of scale and therefore they reduce prices of their products leading to a higher sales due to higher demand of their products and increased market share, as a result competitors start loosing market share
However maybe purchase of new machinery helps to reduce number of workers employed therefore reduced expenses of the business hence the shrinking profits might not reduce but maybe increase raising the dividends of the shareholders Secondly
@@fariskhan7624 well said. You could also mention that the extent to which costs rise will also depend on the scale of the business as large businesses experience economies of scale and could therefore bargain for a lower rate of interest
sir i want your email id for checking my attempts because i am not able to get a good grade in business and i have also given retake beside that my grade is same
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.
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.
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.
Well articulated! You’re good to go. All the best!
Just took paper 12!! This really helped, I gave "depends" of evaluation and " effects / consequences " for analysis and I think i did okay! TYSM
Im sure you did great Iris! ☺️
this vedio really helps me! thank you!🥰
Analysis was my weakest part in answer but now l can overcome it easily. Thank You Sir.
Alhumdulilah! All the best for your exam Hammad!
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.
Some suggestions for scenario 3:
If you’re going to mention flow production leading to greater profits, you need to link the chain accordingly. Like, businesses will get benefit due to lower costs of production (be it cheaper raw materials due to bulk buying or efficient machinery) and thus greater profit margins per unit sold.
Or if you need to link market share, then you can mention that businesses can transfer this benefit of reduced per unit costs to consumers in form of lower prices, thus enabling them to switch from competing brands and competitors losing market share.
Chains of analysis need to be conceptually linked.
You have a great written expression and articulate really well. All the best!
And thank you for your comment ☺️
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.
Thanks for your time and devotion Sir🙏🏽
I really think that your videos will help a lot of students❤❤
GOD bless you abundantly 😇🍀
That was so nice of you! Thank you 🎉🎉
@@bkbilalkurd 😇
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.
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
A very good chain of analysis right there!
@@bkbilalkurd thank you very much sir!😊did the business papers during the past weeks and answered just like how you said.. i couldn't have been more confident in the paper😊thanks again and i will keep you updated for the results!😊
@@kainerabot2667 Brother your result updates?😊
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 😜)
This was very thoughtful of you! Thank you so much 🥰 And yes, full marks on analysis right there! 😄
Thank you Sir!
Most welcome!
❤ Good advice
Thank you!
1. A business obtaining a large amount of loan for the purchase of machinery can lead to efficient production of goods, thus raising output and preventing a lack of shortage, leading a more positive image in the eyes of consumers, therefore leading to the business having a good reputation, thus attracting more customers, leading to more sales which then generates more revenue and thus profit, and so the company can have a bigger market share and increase in size, leading to shareholders getting bigger dividends.
way too long chain of analysis. if u need to analyse another impact u may need to repeat points which can reduce ur marks
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.
One of the best evaluative video I have ever seen jazakallah sir Bilal kurd ❤️♥️
BarakAllah for your positive feedback ☺️☺️
Bestest video for analysis! Waiting for evaluation now. 💪🏻
Thank you so much! ☺️
And yes, please do stay tuned 😀
This video is very helpful and now I'm able answer the analysis questions. Thankyou sir for such videos 💕
Thank you so much for your positive feedback Shahab! ☺️
thankyou very helpful
Glad it helped! 🥰
12:10 Developed Analysis
Case C, 2 statement reflects analysis.
thank you for this , it was really helpful ❤👌
Utmost pleasure! Thank you for your feedback ☺️
This was so helpful thank youuu!!👍👍
Glad it was helpful! 😃
in the analysis for example in the 3rd question am i supposed to define the meaning of flow and batch production then analyse?
Thank u sir much needed ❤
Most welcome Abuzar!
And yes, the video on evaluation is in process as well. Will upload it soon inshAllah!
me having my first business as level exam
paper 1, i never do business before ( didnt do my igcse)
sooo thank yiu so much for this
if i get betterr result than my mock i willl update ahhaah
You will do great! All the best!
It really helped a lot
Thank you sir
So glad it helped ☺️
2 A business has decided to obtain a large amount of loan to finance the purchase of new machinery. Develop a chain of analysis of how this may affect the share holder
A large amount of loan has obtained for which business has to pay huge interest this will increase expense of the business and this leads in the reduction of profits therefore the dividends which are paid from profits will reduce
3 )A business has decided to change its production method from batch production to flow production. Develop a chain of analysis of how this may affect competitors
Flow production is capital intensive,this will reduce the cost of production and increase the supply of a business which will help business on decreasing its prices. This can attract more new customers and competitors will lose their market share
@@huzaifasohail7288 well done!
3. Adobting Flow production will lead to an increase in production in lesser time so their average cost per unit will decrease as a result they will be able to sell more units at a lesser price than their competitors as a result competitors will lose their market share.
Well expressed!
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
Hello Zoha.
Zoha, your analysis in the third point is really solid. But yes, what you can do is that since you’ve mentioned the business gaining a competitive edge over rivals, writing that competitors will lost market share may not be necessary anymore since you’ve also indicated that the business’ market share is likely to increase.
And since you have talked about the average costs being lowered, responding to demand quickly may be another argument in itself. You can just state that the business can charge relatively lower prices than competitors due to its costs being lower leading to ….
And thank you for your feedback!
Do check out the video on evaluation too. You would find it useful as well :)
@@bkbilalkurd ok sir, I'll work on being able to differentiate several concepts as different points then one
@@bkbilalkurd yes, I'm watching that rn!
Arrrrry Sirrrrr, 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
Thank you so much Ali! I’m pleased beyond measure that the video was able to help you ☺️
Great chains of analysis! Well done!
this helped a lot!!
Glad to have helped ☺️☺️
Thank you. It was really helpful!. Sir Can you please make a similar video for evaluation also.
Thank you Umer! I’m glad to be of help. And yes, for sure :)
Thank you Umer! I’m glad to be of help. And yes, for sure :)
Large amount of loan obtained lead to increasing interest rate therefore if loan are not used effectivly, the profit might need to use for paying the debt as a result reduced the dividends for shareholder.
Suggestions:
Rather than mentioning increasing interest ‘rate’ write ‘payments’
Profit will be used in the payment of interest regardless whether loans are used effectively or not
Which will result in less amount to be paid in form of dividends
THANKYOOOUU SM SIR
My utmost pleasure Imaan!
Amazingly explained sir 👏. One question can we use this in bussines strategy question too or thay would require a more detailed analysis
Sir do make a video on evaluation too
2. Obtaining a large amount of Loan will cause an increase in Interest rate which will lead to higher Expenses, so higher expenses mean lower profits, and as a result of lower profits shareholders dividends will be reduced.
Very well. Just change interest rate with interest payments
@@bkbilalkurdok
Thanks
Case1: A business has obtained a large amount of loan to finance the cost of new machinery. Develop a chain of analysis of how this might affect the shareholders.
As a business obtains a large amount of loan its liability has increased. It has to pay back the loan with additional interest. Therefore, the payback amount will have to be deducted from the profit, which will reduce the business' profits of the year or the final profit. So, less finance and funds will be left with the business to pay dividends to shareholders. Thus, reducing the overall amount of dividends for shareholders.
Case2 : A business has decided to change its form of production from batch production to flow production. How will this affect its competitors?
As a business adopts a flow production method its efficiency and productivity will increase. It will also achieve economies of scale fuether reducing production costs. This will enable the business to reduce its selling price, which will potentially increase sales and profitability. As sales will increase, the business will gain market share. Therefore it will decrease competitors' sales.
Wow such a clear answer, this is better than the marking scheme.
If a large amount of loan is obtained, interest rates have to be paid on it which will decrease the net profit because interest rates are expenses of the business, as a result of low net profit, dividend paid to shareholders will decrease, which can lead to no further investment or shareholders selling their shares.
Bullseye! Right on point!
FOERVER KING👑❤️
Thank you Shahzaib 🥰
large amount of loan obtained would mean that firm gearing ratio has increases this will lead to worseing off the financial health of the business as a result of this share holders would be reluctant to buy more shares.
Very well done!
You could also mention in between the majority of the profits will now be used in the payment of interests leaving lesser profits to pay out as dividends
Sir can you make the video on evaluation as well as i struggle with it
There is already a video on evaluation. Please check channel playlists or the description
@@bkbilalkurd it's in the playlist
Thanks
Scenario 2: large amounts of loan is obtained which will result in increase in gearing as well as the interest paid will also increase which will result in less profit for shareholders and there will be reduction in dividends added well as it will not attract new investors.
Does cambridge cut your mark if you don't do paragraphing? Please need urgent reply?
SIR PLEASE ALSO MAKE A VIDEO ON APPLICATION PLS PLS PLS
more videos on p4 plsss
for scenario 2: large amount of loan obtained will increase the business' non-current liabilities resulting in a hike in gearing ratio which means reduced retained earnings and hence, reduced dividends for shareholders.
for scenario 3: a business adopts a flow production system which leads to better productivity and efficiency of operations which might mean better quality of product and increased sales and more customers which will eventually lead the competitors to lose market share.
is this correct sir jee?
Very well expressed Zeyan! Well done!
Sir, in the video above the examples which you gave only shows analysis or it also showed further analysis?
Both
Large amount of loan will come with costs as well, this will result in finance cost of interest for the business, as a result of that total expenses will increase that will have an impact of a decrease in profitability of business, this will ultimately lead to a fall in dividends. Sir, good enough?
Very well put!
sir a small confusion , i have read that examiner wont entertain contradiction of points for instance in one para we say profits increases and then in nxt para we say it will decrease upto what extend this is true and what can be done to avoid it plz answer
The examiner expects students not to write mirror points. Like for example, if there are two locations with one being costly in terms of rent since it is in the city centre and the other being cheaper as it is in a remote location, it won’t be advisable to write arguments such as
Location B has lesser rental costs which would reduce the fixed costs of the business and improve profits xyz however on the other hand location A has more rental costs which would increase the fixed costs and reduce profits.
While the candidate will be awarded marks for discussion on location B, the argument on location A won’t be credited as it just reverses what was said above.
@@bkbilalkurd so i am currently in a2
If i write that increase motivation by delagation would result in worker being more involved in descion making and this would result in their effectiveness and therefore producing at low cost consequently high profits to be achieved by firms
Now in second para i say that
Delagation may involve costs that is workers might have no expertises in certain areas which means they making ineffective strategic descions this could result in bad reputation of business and low sales as a result low profits
Here i am confused that i am contradiction will examiner allow this ?
@@abuzarghazan7870 this seems to be a well developed pragraph. And what you can do is when developing the drawback, try to link the end effect on something else rather than profits. Like increase in labour turnover or business losing its competitive edge. And it would be good to evaluate this point as well like much would depend on the existing skills of workers available in the business and the degree of responsibility they are prepared to undertake for delegation to be successful.
Evaluation should only be shown in the question is of 12 marks
@@bkbilalkurd thank u sir much appreciated ❣️May Allah shower his blessings upon u
First chain of analysis
Large amount of loan leads to increased annual expenses of the business in form of interest therefore profits of the business get shrinked and as a result dividends get reduced for the shareholders
Second chain of analysis
Business adopts flow production thus there cost of production gets lowered due to achieving economies of scale and therefore they reduce prices of their products leading to a higher sales due to higher demand of their products and increased market share, as a result competitors start loosing market share
Perfectly articulated! That is exactly the chain that is expected. Well done!
And if you were to evaluate the first argument, what could you write in continuation?
However maybe purchase of new machinery helps to reduce number of workers employed therefore reduced expenses of the business hence the shrinking profits might not reduce but maybe increase raising the dividends of the shareholders
Secondly
I couldn't think another evaluation
Will this help me cater the 2 marks of point evaluation of this paragraph?
@@fariskhan7624 well said. You could also mention that the extent to which costs rise will also depend on the scale of the business as large businesses experience economies of scale and could therefore bargain for a lower rate of interest
Case C, the 2 statement ?
Perfect!!
Case C
2?
Correct!
what if the question asks; analyse the advantages of xyz. Will we have to write drawbacks as well when analysing the advantages?
no Imama. If the question is one sided in an 8 mark question, there is no need to talk about the other side
sir i want your email id for checking my attempts because i am not able to get a good grade in business and i have also given retake beside that my grade is same