Consider the following two ways TSE could use to increase efficiency. Which way should TSE use? Justify your answer. - Improving labour skills - Increasing automation and technology Improving labour skills: . . . . . . . Increasing automation and technology: . . . . . . . Recommendation: . . . . . . .

Business

IGCSE&ALevel

CAIE

Exam No：0450_s25_qp_22 Year：2025 Question No：2(b)

Answer:

Justification might include:
- Improving labour skills is the best way to increase efficiency at TSE's factories. The skilled production employees will learn more skills which will enable them to produce more output per worker than previously. This will also motivate the workers to work harder and produce more output. Automation is very expensive to purchase the new equipment, and TSE may find it difficult to raise sufficient funds for the investment in many factories.
- Introducing automation and technology in the factory to make tennis balls in the best way to increase efficiency. Technology will mean fewer production workers will be needed so saving on wage costs and greatly increasing output for each remaining employee in the factories.

Knowledge points:

4.1.1.1. Managing resources effectively to produce goods and services

4.1.1.2. Difference between production and productivity

4.1.1.3. Benefits of increasing efficiency and how to increase it, e.g. increasing productivity by automation and technology, improved labour skills

4.1.1.4. Why businesses hold inventories

4.1.1.5. The concept of lean production: how to achieve it, e.g. just-in-time inventory control and Kaizen; benefits of lean production

4.1.2.1. Features, benefits and limitations of job, batch and flow production

4.1.2.2. Recommend and justify an appropriate production method for a given situation

4.1.3. How technology has changed and is changing production methods, e.g. using computers in design and manufacturing

Answer:

Knowledge points:

Solution:

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