GCSEBusinessOCRExam Questions4. Operations4.2 Quality of Goods & Services

Quality of Goods & Services (OCR GCSE Business): Exam Questions

Exam code: J204

19 mins12 questions
1
1 mark

Zayn is the owner of an established business that makes heated gloves. The business has recently experienced an increase in product returns.

Which of the following would help Zayn deal with this problem?

  • Giving a bonus to the employee who sews the most gloves each month

  • Improving quality checks to ensure every glove heats up correctly

  • Researching other types of heated clothing that the business could make

  • Segmenting the market by age, gender and lifestyle

Choose your answer

2
1 mark

Case Study

Primark Ltd

Primark Ltd is a fashion retailer that sells clothing and homeware at prices lower than most other retailers. The company is aware of the importance of consumer law and of having low-cost suppliers.

Primark Ltd started to sell its products online in 2022. After changes in buying habits and pressure from customers, in 2022 Primark Ltd launched an online click and collect service for shoppers.

Primark Ltd is very aware of the need to have ethical suppliers. The following ethical factors are among those important to Primark Ltd:

  • giving clothes a longer life by using material from sustainable sources

  • encouraging its supply chain to pay a living wage and look after the health and well-being of their workers.

Identify one factor which can affect the quality of a business’ products.

How did you do?

3
1 mark

Sabena works for a small business that makes computers. Her main task is to test every computer before it leaves the factory.

What key business function does Sabena perform?

  • After sales service

  • Quality control

  • Setting production levels

  • Supply chain management

Choose your answer

4
4 marks

Case Study

Jaguar Land Rover

Jaguar Land Rover (JLR) is one of the largest manufacturers of cars in the UK. The business buys some of the parts it uses to make the cars from the UK; other parts are bought from overseas. JLR specialises in producing luxury cars. JLR’s main competitors are German car manufacturers - BMW and Mercedes.

In recent years, sales of JLR cars have been affected by:

  • the slowdown of consumer spending in China and Russia

  • the increase in consumer spending in Europe.

Explain two reasons why quality is important to JLR.

Reason 1 ...................................................................................................................

Reason 2 ..................................................................................................................

How did you do?

5
2 marks

Case Study

AstraZeneca plc

AstraZeneca plc (AZ) is a multinational pharmaceutical company that operates in over 100 countries around the world. AZ develops treatments for a range of diseases. It sells its medicines and vaccines worldwide. Its headquarters are in Cambridge, England. In 2021 AZ’s sales revenue was £37 417m, from which it made £24 980m gross profit.

AZ has a code of ethics, which is at the centre of everything that it does. The company has approximately 75 000 employees worldwide; 10 000 of these work in its three research and development centres.

AZ uses technology throughout its operations to provide high quality products for its customers. These customers include doctors, hospitals and governments from around the globe.

In the UK, AZ has changed the way it sells its products. Previously, sales staff would visit medical professionals; now it uses a call centre and website where medical professionals can order products and samples. AZ says this means it can now provide a high quality service that meets the needs of its customers at a lower cost.

State two reasons why quality in the production of goods is important to a business.

How did you do?

6
1 mark

QT Homeware Ltd manufactures small kitchen appliances. The company has recently received a number of emails complaining that its kettles leak.

Which of the following actions would help QT Homeware Ltd deal with this problem?

  • Include a cloth to wipe up any leaks in the box of all new kettles

  • Launch a promotional campaign in a housekeeping magazine

  • Meet with production workers to discuss how to reduce costs

  • Physically test every hundredth kettle to ensure it is watertight

Choose your answer

7
1 mark

The concept of ‘quality’ requires a business to:

  • produce goods that are better than the competition

  • produce goods that are reasonably priced

  • provide services that are fit for purpose

  • provide services that are value for money

Choose your answer

8
1 mark

Which of the following would be an example of a quality assurance activity for a car manufacturer?

  • Driving every tenth car to test that the brakes are working correctly

  • Holding a meeting with production operatives on how to improve the manufacturing process

  • Increasing the amount of money that the operations function can spend

  • Visually inspecting two cars of each colour for defects in the paintwork

Choose your answer

9
1 mark

The concept of ‘quality’ refers to making products:

  • by hand

  • of a satisfactory standard

  • that are better than the leading brand

  • to the highest possible specification

Choose your answer

10
2 marks

Case Study

John Lewis & Partners

John Lewis & Partners (JLP) is a chain of department stores that stocks a wide range of products from clothing to home furnishings. As a result it is always looking for high quality suppliers for its products.

JLP uses face-to-face selling in its stores. Staff in the electrical department are trained to have good product knowledge. These products include a wide range of computers, televisions and washing machines. However, JLP’s recent growth has come from e-commerce.

JLP has a wide range of suppliers. It is important that the right supplier is chosen, so JLP will take time evaluating new suppliers and will review existing suppliers regularly so that it can continue supplying high quality products to its customers.

Explain one reason why quality is important to a business in the production of goods.

How did you do?

11
1 mark

A manufacturer makes chocolate bars. All of the chocolate bars are passed through a machine to check for production mistakes before being boxed.

This is an example of:

  • product development

  • product recall

  • quality assurance

  • quality control

Choose your answer

12
3 marks

Case Study

Marks and Spencer plc

Marks and Spencer (M&S) is one of the UK’s leading retailers. It is committed to making every moment special for its customers, through its high quality, own-brand food, clothing & home products.

M&S has an ethical programme called ‘Plan A’. This was relaunched in 2017 with three new objectives for 2025:

  1. ‘Nourishing our wellbeing’ – including looking after staff and their needs.

  2. ‘Transforming local communities’ – including supporting staff who want to volunteer in charities.

  3. ‘Caring for the planet we share’ – including developing better recycling for packaging.

In 2017, 60% of M&S’s revenue came from the sale of food, which it sells through its 1025 UK stores as well as through e-commerce on its website.

The majority of the food it sells comes from one of its 283 ‘food factories’ located around the country. The Montana Bakery is one of these factories. It produces speciality breads, rolls, garlic breads and pizza bases for retailers and sandwich makers. The bakery has grown and has moved to a larger factory, where it is considering switching from batch production to flow production and automating some of the production.

Analyse one reason why quality is important to M&S.

How did you do?