Summary Edexcel AS/A level Business studies, mind map/notes for chapter 38

Too many resources
in one part ,deploy
them in another
part
current output
= ------------------------------------- x 100
Redeployment Maximum possible output




Improving
capacity utilisation
Use of resources
Reduce staff redundant, Operating ineffici
part-time staff unit costs not min

Sell-off unused assets Reduce capacity Improving Morale of worker
Review leasing capacity capacity utilisation May feel insecure
Drawbacks/
Smaller premises-lower Resent working ha
Benefits
costs Under- utilisation needed
Capacity
Mothball resources utilisation Can easily meet in
Hiring another business to in demand

‫خ‬
do work which was
previously done in-house Improving
Less work-related s
Reduces sickness/a
Business will be a ‫خ‬
Outsourcing capacity utilisation
‫خ‬
specialist-more efficient Puts strain on resou
Tires workforce-abs
Greater buying power- Over-utilisation
‫خ‬
Able to negotiate lower prices Drawbacks/ May not be able to
Benefits increase in demand
Selling more= Improving
Insufficient time fo
producing more capacity utilisation
Increase sales training + maintena
Increase usage Average costs lowe
Increase capacity
utilisation during Feel secure
ii
Staff motivation be
off-peak hours--
offer incentives Workers happier-l
work
Improve image –m
confident custome