Edexcel Business A Level Revision

Flow production - Items flow along the production line in a continuous process making high volumes of the exact same product. Once one task is finished the next task is started immediately, therefore time taken on each task must be the same. FLOW PRODUCTION ADVANTAGES DISADVANTAGES Costs per unit of production are reduced through improved work and material flow Very long set up time and reliant on high quality machinery, so if machinery breaks and therefore breaks the flow, production will be shut down Suitable for manufacture of large quantities High raw materials and finished stocks unless lean production is used Capital intensive which means it can work constantly without the interference of employees Goods are mass produced which means there is no customisation to meet specific needs for customers Less need for training and skill as most work is done by machines Uses specialist machinery so investm...

Venture capital - Investment from an established business into another business in return for a percentage. Typically invests in early stage, high risk businesses with potential for rapid growth and/or high returns. Venture capitalists will normally look for a high rate of return in a specific time period. The business or entrepreneur may also benefit from expertise and mentoring from the venture capitalist. OFTEN ASSOCIATED WITH HIGH RISK START UPS ADVANTAGES OF VENTURE CAPITAL Potential for large sums of money for investment Expertise to help the business Makes it easier to attract other sources of finance Provides the required capital for expansion DISADVANTAGES OF VENTURE CAPITAL A long and complex process (venture capitalist hard to find) Expert financial projections are likely to be required Initially expensive for the firm e.g. legal and accounting fees Partial loss of ownership Risk of conflict or received interference Venture capitalists requires a high r...