← Internal operations of a large business

Structure, production and efficiency

Every one of these is asked as an advantage/disadvantage pair.

The pairs worth memorising

• Flow production: lowest unit cost ↔ cannot respond to changing demand.
• Shamrock structure: flexible, low fixed labour cost ↔ weak loyalty, lost knowledge, inconsistent service.
• Operating at capacity: high utilisation, low unit cost ↔ no slack for breakdowns, absence or demand spikes.
• Outsourcing / using external parts of the business: specialist skill without the fixed cost ↔ less control over quality and timing.

✕

One reason where TWO were asked

Every (iii) part in this paper says "justify, with TWO reasons", and most name two criteria to refer to. One reason, however good, caps the answer. Write them as two clearly separated paragraphs so the marker can find both.

The three-step ladder, applied to structure and production

• Achieved: identify the structure/process, give ONE advantage.
• Merit: give the disadvantage, and its impact on a named outcome (service, effectiveness).
• Excellence: justify against two named criteria, comparing to a genuinely different structure/process.

Practice for this standard covers the whole topic — flashcards and quiz.