A Level Business Week 5

Operations management.
Location and scale (cont’). Quality management.

Chapter 26
Chapter 27
 Week 4 Revision
(Operations management)

Scale of operations
(Economies and
Week 5: diseconomies of scale)

Plan Quality Management

Quality control and

quality assurance

Benchmarking
 AS takers self-study:
19, 20; 23, 24, 25; 29.
Term 3 Plan
Week Topic Textbook chapter
1 Marketing. The nature of marketing; Market research (AS) Chapter 17, 18 AS

2 The marketing mix (4P) Chapter 19, 20 AS Quiz 1

Marketing analysis Chapter 21
3 Marketing analysis cont’ Chapter 21
Marketing strategy Chapter 22
4 Operations management. Introduction (AS) Chapter 23 to 25 AS
Location and scale Chapter 26 Quiz 2
5 Location and scale cont’ Chapter 26
Quality Management Chapter 27
Assignment submission
6 Operations strategy Chapter 28

7 Operations strategy cont’ Chapter 28

Term revision Chapters 21 to 28
8 Term 3 assessment (Marketing & Operations management) Chapters 17 to 28
Finance and accounting (Business finance: sources of finance) Chapter 29.3 AS
9 Forecasting and managing cash flows Chapter 30
Costs Chapter 31
Quiz 3
10 Costs. Budgets and variances. Quiz 3. Chapter 31, 32
AS and A Level
Exam dates
Exam Date

AS Business paper 1 3rd of May

AS Business paper 2
10th of May
AS Economics paper 2
AL Business paper 3 16th of May

AL Business paper 4 20th of May

AS Economics paper 1 (MCQ) 7th of June

IGCSE: 17, 21 May

Week 5 outcomes
Location and scale
The reasons for and impact of offshoring and reshoring
The factors that influence the scale of a business
Causes and examples of internal and external economies and diseconomies of scale
The links between economies and diseconomies of scale and unit costs

Quality Management
Understand Quality Management
Quality in terms of meeting customer expectations
The importance of quality
The impact of methods of quality control on a business
The impact of methods of quality assurance on a business
The impact of Total Quality Management (TQM) on a business
The importance of benchmarking in quality management
Week 4 Revision
7 Stages of New Product Development
1. Generating Ideas: Sources include R&D, competitor adaptation, market research, employee suggestions, sales input,
and group brainstorming.

2. Idea Screening: Eliminate ideas with the least commercial potential based on benefits, feasibility, and profitability.

3. Concept Development and Testing: Explore features, costs, target consumers, benefits, and gather feedback through
market research.

4. Business Analysis: Evaluate impact on costs, sales, profits, estimated price, finance, patenting, fit with product mix,
and economic factors.

5. Product Testing: Assess technical performance, meet

expectations, develop prototypes, and adapt based on
feedback.

6. Test Marketing: Conduct a small, representative test

market to observe behaviour, gather feedback, and
reduce risks associated with a full-scale launch.

7. Commercialisation: Full-scale launch, introducing the

product to the market, with a promotional strategy,
advertisements, and stocked distribution channels.
Calculating moving averages
Step 5: Calculate the 1 2 3 4 5 6 7 8
Four- Eight- Quarterly
average seasonal variation. Sales quarter quarter moving
Seasonal Average
Year Quarter moving seasonal
revenue moving moving average
Add up all the seasonal total total (trend)
variation variation
variations for each separate 2019 1 120
quarter and divide by the 2 110
number of results: 3 115 117.75 -2.75 -4.19
4 130 475 118.13 +11.87 +24.69
Quarter 1 2020 1 112 467 942 121.75 -9.75 -14.63
2 121 478 945 130.38 -9.38 -2.76
(– 9.75) + (–19.50) 3 133 496 974 138.63 -5.63 -4.19
4 181 547 1043 143.50 +37.50 +24.69
2
2021 1 127 562 1109 146.50 -19.50 -14.63
= –14.63 2 145 586 1148 141.13 +3.87 -2.76
3 133 586 1172
4 138 543 1129
Complete the rest
of the average
seasonal variations
on the worksheets.
Planning the marketing strategy
Purpose of Marketing Planning:
• Importance of an integrated marketing mix (4Ps).
• Coordination for achieving marketing objectives within budget.
Limitations of Marketing Planning:
• Time-consuming for small businesses
Contents of a Marketing Plan:
lacking skilled management expertise.
• Purpose and mission of the business.
• Possibility of inflexibility in fast-
• Situational analysis, including market research.
changing markets.
• Marketing objectives (SMART criteria).
• Inadequate research can lead to
• Marketing strategy (focusing on action plans).
inappropriate strategies.
• Marketing mix (4Ps: Product, Price, Promotion, Place).
• Marketing budget (available resources)
• Executive summary and implementation timeframe
Operations Management
Introduction
Operations management is the administration of business practices and
processes to maximise efficiency and quality through effective resource
allocaiton.
 Intellectual capital = intangible
business capital:

The production (transformational) process • human capital (knowledge and skills);

• structural capital (databases,
information systems):
~ tranforming inputs, adding value and • relational capital (good links with
producing outputs for customers stakeholders like suppliers and
customers).

Production Process Basics:

• Operations management involves utilising inputs = factors of production to produce goods
and services.
• Land (space for operations), labour (manual or skilled), capital (equipment, intellectual
capital), and enterprise (entrepreneurial decision-making).
Added
Transformational Process: value
(selling price –
• Conversion of inputs into outputs through operations. costs)

• Applies to manufacturing and service industries, aiming for added value.

the additional features

or economic value that
a company adds to its
products and services
before offering them
to customers.
The transformational process
Efficiency, effectiveness,
productivity and sustainability
Efficiency – the ratio of outputs to inputs during production (e.g., output
per worker).

Effectiveness – producing output at the highest ratio of output to input.

Productivity – meeting business objectives by using inputs productively to

meet customers’ needs.

Sustainability of operations – business operations that can be maintained in

the long-term (e.g., protecting the environment and not damaging the
quality of life for future generations).
 Labour vs Capital intensive operations
Labour intensive
Involving a high level of labour input compared with
capital equipment
Common in small businesses producing customised products
or personalisation to meet particular customer needs.
Advantages: Varied work, low machine costs, ability to
meet specific customer needs, labour is flexible resource.
Limitations: Low output levels, requirement for skilled and
high-paid workers, quality dependent on worker skill.
Factors Influencing Choice:
1. Nature of product and 2. Relative cost of labor and
brand image. capital.
Capital intensive
Involving a high quantity of capital equipment
compared with capital labour input
Common in industries producing mass-produced goods.
Advantages: Economies of scale, consistent quality, low
unit costs, ability to cater to mass market.
Limitations: High fixed costs, financing equipment,
maintenance costs, technological obsolescence (becomes
older) amid tech progress.
3. Business size and access to
finance.
 Job production – production of one-off item
specially designed for customer.
E.g., Specially designed wedding rings or handmade suits.

Batch production – production of a limited number

of identical products (stage by stage).
E.g., Baker making batches of rolls,

Production pharmaceutical manufacturing, printing (books).

Methods Flow production - production of items in a

continually moving process.
E.g., Coca-Cola production, automobile industry, electronic goods.

Mass customisation – the use of flexible,

computer-aided technology and production lines
to make products that meet individual customers
requirements for customised products.
"Nike by You" custom sport shoes.
JIT: Just-in-Time vs JIC: Just-in-Case
Inventory management

• JIT: Just-in-Time – aims to avoid holding

inventory is by requiring supplies to arrive just
as they are needed in production and
completed products are produced to order.
No buffer stocks are held.

• JIC: Just-in-Case – aims to reduce the risk of

running out of inventory to the minimum by
holding high buffer inventory levels.

Location decisions
Critical to the success and productive efficiency of a business.
Benefits of an Optimal Location:
• Long-term profitability maximisation.
• Customer convinience and
accessibility.
• Balancing high sales potential with
high rental costs or remote location
with labour availability.
Optimal location – a business
location that gives the best
combination of quantitative
and qualitative factors.
Disadvantages of Non-Optimal
Locations:
• High fixed site costs lead to high
break-even levels.
• High labour costs result in low profits
or losses.
• Problems with recruiting suitable
employees affect competitiveness.
• Poor transport infrastructure
increases transport costs and affects
accessibility to customers, impact
inventory management (limited JIT).
 Advantages of multi-site locations

• Risk Diversification: Multi-site operations spread risk

across different locations.
• Market Reach: Businesses like Amazon expand their market
reach with multiple sites, serving diverse customer needs.
• Customer Convenience: Banks and hotels operate from
multiple sites to enhance customer accessibility and
expand their customer base.
• Resource Optimisation: Secondary manufacturing
businesses benefit from operating across multiple locations
to optimise resources.
Reasons for and impact of offshoring
~ business process relocation from one country to another
Do not confuse offshoring with
outsourcing. Outsourcing is
ü To reduce costs, tap into well-qualified workforces, access global transferring a business function to
markets, avoid protectionist trade barriers, overcoming exchange rate another company. Offshoring is
fluctuations. undertaking a business function in
another country. However, a
ü Offshoring to countries with lower labour costs. business can outsource work to a
company in another country, and
this is also offshoring.
• Widely adopted strategy to reduce costs and remain competitive.
• Encouraged by globalisation and cost-saving pressures.
• Examples: AMEX – customer service to the Philippines, Ford – offshore IT
to India, Dyson – manufacturing to Malaysia.
• Drawbacks: language barriers, cultural differences, quality concerns,
supply chain complexities, ethical considerations.
Reasons for and impact of reshoring
~ transferring a business operation that was moved overseas
back to the country where it was originally located

• Movement of offshored operations back to the home country.

• Reasons: language and communication barriers, cultural differences,
product quality concerns (e.g., call centres), supply chain complexities,
ethical considerations (e.g., less jobs for locals, unethical labour).
• Potential to reduce reliance on international suppliers and enhance control
over operations.

• Toyota: Implemented additional training to overcome cultural differences

among workers in Mexico.
• Burberry: Faced criticism for closing factories in Wales, highlighting ethical
concerns in offshoring decisions.
• Boeing: Reshored jobs to ensure better coordination among suppliers for
the 777X plane.
 Week 5

Scale of Operations
the maximum output that can be achieved using available inputs
Factors that influence
the scale of operations

• Owners' objectives - they may wish to keep the

business small and easy to manage;
• Capital available - if this is limited, growth will
be less likely;
• Size of the market the firm operates in - a very
small market will not require large-scale
production;
• Number of competitors - the market share of
each firm may be small if there are many rivals;
• Scope for scale economies - if these are
substantial, as in water supply, each business is
likely to operate on a large scale.
Increasing the scale of operations

Long-Term Expansion:
• Scale increase necessitates employing more inputs.
• Strategic decision with high costs: land, buildings, equipment, and labour.
• Employing more resources = increasing production scale.

Reasons for Expansion:

• Increase capacity to meet customer demand.
• Benefit from advantages of large-scale production à
à Internal economies of scale
 When answering
Internal economies of scale questions about
economies of
~ factors that cause reductions in unit (average) production scale, make sure
costs as business expands operations’ scale. your answer is
applied to the
business specified
• Large-scale production offers significant cost benefits. in the question.

• Survival challenge for small businesses in industries with intense competition.

Five key reasons for cost benefits:

• Purchasing Economies: Bulk buying discounts and global sourcing.
• Technical Economies: Efficiency of flow production and advanced equipment.
• Financial Economies: Lower interest rates (%) and reduced costs for raising finance.
• Marketing Economies: Spreading marketing costs over higher sales volumes.
• Managerial Economies: Employing specialised managers for improved efficiency.
Internal diseconomies of scale
~ factors that cause unit costs of production to increase
when a business increases its scale of operations

• Absence of disadvantages to large-scale

operations would lead to dominance by huge
corporations.

• Despite benefits, internal diseconomies of

scale restrict domination in certain
industries.
Internal diseconomies of scale:
Causes
Communication Alienation of the Poor Coordination:
Problems: Workforce: • Expansion leads to complex
• Large-scale operations lead • Difficulty in directly organisational structures.
to: involving every worker in
• Difficulties in coordinating
1.Poor
communication
larger organisations. operations across multiple
feedback. • Leads to lack of purpose, departments, divisions, and
2.Excessive
use of non-personal demotivation, and countries.
communication. decreased productivity.
• Risks include ethical
3.Communication overload and • Particularly evident in inconsistencies, duplication
distortion due to long chains flow-line production of research, and higher
of command. systems. production costs.
• Result in poor decisions,
reduced employee
motivation, and higher
costs.
Management strategies
to overcome diseconomies

• Management by Objectives (MBO):

Establishes agreed-upon objectives for
each division aligning with overall
business goals.

• Decentralisation: Grants divisions

autonomy and independence to
manage like smaller business units.

• Reduce Diversification: Focus on core

activities to reduce coordination and
communication problems. Demerging
can divide business units into
independent entities, reducing risks.
 External = as an industry expands in one region

External Economies External Diseconomies

of Scale of Scale

All firms in the region Continued industry

benefit from: growth in one
location can lead to:
• Access to qualified
labour due to local • Increased demand
educational for land and
institutions. labour.
• Established network of • Rising unit costs
suppliers leading to for businesses in
lower costs. the region.
• Enhanced cooperation
and joint
venture opportunities.

Combined effect of economies and diseconomies

on average production costs.
 What is meant by a
‘quality-assured
product’?

Quality Management
~ overseeing all activities and tasks that must be accomplished
to maintain a desired level of excellence.
Quality?
The operations manager at Athletic Shoes is proud of the quality
standards his business achieves. 'Our sports shoes have a retail price of
$25. They are not the best or most stylish on the market. However, only 4 Training Workers:
customers returned shoes because of serious problems over the last 12
• Improves skills, reduces mistakes,
months when we sold 50 000 pairs. All our workers are accountable for
the products reaching minimum standards of quality at each stage of and enhances standards.
production. There are better shoes available, but our customers know • Initial cost and productivity
what they are getting.' The customer service manager at the Exclusive reduction, but boosts motivation.
Footwear shoe shop is returning a pair of handmade leather fashion shoes
to their producers at Ital Fashion Shoe. The manager explained, 'The Better-Quality Components:
retail price of these is $400 a pair. Customers paying such high prices • Costlier but enhances reliability and
expect a perfect product every time. Even the smallest scratch or product longevity.
imperfection means the customers reject them. Even though Ital checks
every shoe at each stage of production, a few minor blemishes are
Quality Circles:
sometimes missed.’
• Groups address production issues,
find solutions.
1 Analyse what a quality product means to each of these businesses. • Utilises workers' expertise, boosts
motivation, and responsibility.
2 Evaluate ways a business could improve the quality of its products.
Quality control and quality assurance

u Quality product – a good or service that meets customers’ expectations à

fulfils its intended purpose.
u Quality standards – the expectations of customers expressed in terms of the
minimum acceptable production or service standards.

Establishing Consumer Expectations:

• Conduct market research and analyse feedback data.

The quality of service offered by a bank, for example, can be assessed by:
• the time and manner in which telephone calls are answered
• queuing time in branches
• the number of accounts errors
• the quality of financial advice.
Setting quality standards

Suggest how quality standards could be measured in the following businesses:

a) Hotel based on reviews; the facilities included, such as swimming
pool, gym, ensuite rooms and reception opening hours.

b) Fast-food restaurant waiting time for service.

c) Internet service provider download and upload speeds;

interruptions to service each month.

d) Nursery school for young children. staff–child ratio; floor area per child;
outdoor play area.

The importance of quality
Benefits for businesses:
• Customer loyalty: Fosters repeat
purchases.
• Reduced costs: Minimises complaints,
replacements, and compensation.
• Advertising savings: Builds a positive
brand image.
• Price premiums: Enables higher
prices for quality goods/services.
Quality is profitable and enhances
competitiveness.
Quality is often viewed as an absolute
concept and not a relative one. In answers
to questions about quality management,
quality must be explained with reference to
the expectations of target market
consumers.
Business Competitiveness affected:
In competitive markets, quality is
crucial.
• Effective competition: Consistent
quality over price reduction.
• Brand image: High-quality brands
justify premium pricing.
• Consumer expectations: Rising
incomes elevate quality standards.
• Cost-benefit analysis: Weigh cost of
quality against competitiveness
gains.
Quality control

There are two approaches that a business can take when attempting to achieve
quality output:
• Quality control – checking based on inspection of the product or a sample of
products.
• Quality assurance – a system of agreeing and meeting quality standards at
each stage of production to ensure customer satisfaction.

Examples:
• Testing a tablet computer for battery-charging capability.
• Listening to and recording a telephone banking adviser's call.
Quality control
~ checking based on inspection of the
product or a sample of products.
Stages:
• Prevention: Designing quality into the product.
• Inspection: Checking finished products, traditionally costly.
• Correction and Improvement: Rectifying faults and improving processes.

Quality Control Inspection:

• Traditionally end-of-production inspection.
• Involves qualified engineers.
• Sampling process used; not every product inspected.
• Statistical techniques applied for in-process quality checks.
Quality Control Chart:
Used to monitor and respond to deviations in product quality.
Quality control chart
Quality Control Chart:
Monitors deviations in product quality.

Example: Weight recording for loaves of bread.

Action: If weight falls outside warning limits, process improvement needed.

Impact of quality control on business

• Negative Culture: Inspection focuses on finding faults, fostering employees’ resentment.

• Relationship: Employees may feel gratified if a defective product goes unnoticed by
inspectors, harming morale and working relationships.
• Demotivation: Inspection tasks can be tedious, leading to demotivation.
• Delayed Detection: Faulty products may pass several stages before detection.
• Reduced Responsibility: Workers may not feel accountable for quality.
Many weaknesses lead to a move away from this approach.
Quality assurance: Methods
~ a system of agreeing and meeting quality standards at
each stage of production to ensure customer satisfaction.

• Emphasis on prevention: Designing products

for fault-free manufacture to achieve
quality right the first time.
• Worker responsibility: Workers aim for zero
defects, reducing chances of faulty products
and costly reworking.
• Establishment of quality standards and
targets for each stage of production.
• Inspection of components, materials, and
services upon arrival, not just at the end of
production.
 • Nissan car factories:

Quality assurance: Stages

Predetermined quality standards
checked at each assembly stage.

~ a system of agreeing and meeting quality standards at

each stage of production to ensure customer satisfaction. • First Direct:
Sets limits on waiting times for calls
and monitors customer requests.
Product design: Designed to meet consumer expectations.

Quality of inputs: Ensuring strict quality standards for bought-in

components.

Production quality: All employees responsible for maintaining

quality standards.

Delivery systems: Monitoring punctuality and reliability of delivery.

Customer service, including after-sales service: Essential for

continued customer satisfaction.
Impact of quality assurance on business

• Can lead to international recognition, enhancing brand

image and customer confidence.
• Everyone is responsible for quality, enhancing job
enrichment.
• Increased worker motivation through involvement in
quality improvement efforts.
• Traceability of quality problems to specific production
stages.
• Reduction in final inspection and reworking costs.
• Setting quality standards for all production stages.
• Customer loyalty and competitiveness.

Costs:
• inspection preparing costs;
• bureaucracy for gaining certificates etc.
The impact of total quality management (TQM)
on business ~ involving all employees in quality improvement

Total Quality Management (TQM): Cost Reduction and Quality

• An approach assuming all employees in
Improvement:
pursuing quality. • Aims for 'get it right first time' and zero
• Requires a cultural shift and emphasises defects.
shared responsibility. • Reduces costs associated with defects.
• Treats departments as interconnected
suppliers and customers.
Commitment and Leadership:
• Needs commitment from all levels.
Implementation:
• Requires empowering the workforce.
• Requires thorough explanation and training.
• Suitable for a collaborative, non-
• Empowers workers to ensure quality at authoritarian environment.
every stage.
• Reflects Herzberg's principles of job
enrichment.
Total quality management (TQM)
 Determine key factors
Benchmarking Continuously measure
through customer feedback.

~ comparing a business progress and refine

processes as needed.
against the performance Gather data
standards of the best on reliability,
delivery, and
businesses in the same customer
complaints.
industry
Adjust processes to meet
established standards.
Stages in
benchmarking
process
Benchmark performance
indicators (BPI)
– the areas of business Assess top
performance that are measured performers
through industry
and compared with other schemes or
businesses consultants.

Aim to meet or exceed

standards of best- Identify weaknesses and areas
performing firms. for improvement.
Importance of benchmarking
in quality management
Benchmarking Importance: widely used for quality improvement.

Advantages: Limitations:
• Effective problem solving. • Reliance on external data (can be
difficult to obtain)
• Customer-centric focus.
• Risk of copying ideas and practices
• Enhances competitiveness.
• Cost considerations.
• Facilitates cross-industry learning.
• Engages the workforce.
• Internal Benchmarking is
comparing performances within
the business.
 Industry benchmarks: BPI - Net profit margin
2019 2018 2017 2016 2015 2014
01 - Agricultural Production Crops (27) -3.60% -0.50% 3.30% 4.80% -0.50% -3%
02 - Agriculture production livestock and animal specialties (6) -3154.90% -3311.10% -0.50% -6.90% 12% -11.60%
07 - Agricultural Services (18) 2.80% 2.70% 2.40% 0.80% 2.90% -104.70%
08 - Forestry (2) 4.30% 6.60% 17.90% 7.40% 14% 14.20%
09 - Fishing, hunting, and trapping (7) 9.40% 12.20% 20.20% 33.50% -22576.60% -11526.60%
10 - Metal Mining (272) -106.10% -151.60% -427.50% -255.70% -669.90% -330.20%
12 - Coal Mining (28) 9.90% 10% 10.40% -9% -31.20% -9.10%
13 - Oil And Gas Extraction (492) 3.20% 3.90% -12.60% -53.20% -161.10% -10.30%
14 - Mining And Quarrying Of Nonmetallic Minerals, Except Fuels (41) -6.10% 1.70% 3.10% -26.20% -3.50% 6.40%
15 - Building Construction General Contractors And Operative Builders (48) 4.80% 4.80% 3.60% 4.40% 5% 6.40%
16 - Heavy Construction Other Than Building Construction Contractors (20) 2% 2% 2.30% 2% 2.10% 2.20%
17 - Construction Special Trade Contractors (33) 0.50% 2.50% -0.60% 2.10% -3.40% 1.20%
20 - Food And Kindred Products (190) 4.10% 5.60% 3.50% 2.90% 3.20% 2%
21 - Tobacco Products (21) -21.70% 4.10% -76.10% 20.60% -48.20% -34.30%
22 - Textile Mill Products (16) 3.40% 6.30% 4.50% 6.60% 6% 2.50%
23 - Apparel And Other Finished Products Made From Fabrics And Similar Materials (56) 2.90% 5% 3% 1.70% 4.20% 2.90%
24 - Lumber And Wood Products, Except Furniture (29) 3.50% 3.80% 5.10% 4.50% 1.60% 1.90%
25 - Furniture And Fixtures (29) 4.60% 4.10% 4.70% 4.80% 4.80% 3.60%
26 - Paper And Allied Products (41) 5.80% 5.50% 3.50% 3.30% 4.80% 4.50%
27 - Printing, Publishing, And Allied Industries (67) 0.60% 1.70% 1.10% 0.10% 2.50% 2.60%
28 - Chemicals And Allied Products (1076) -93.40% -98% -60.50% -62.70% -43.50% -26.60%
29 - Petroleum Refining And Related Industries (38) 4.60% 3.30% 2.50% 0.10% 3.20% 2.60%
30 - Rubber And Miscellaneous Plastics Products (54) 1.40% 3.40% 2.30% 1.50% 1.80% 1%
31 - Leather And Leather Products (16) 5.20% 6.10% 6.10% 7.30% 7.80% 9.40%
32 - Stone, Clay, Glass, And Concrete Products (31) 2.40% 3.80% 2.60% 3.10% 2.10% 2.90%
33 - Primary Metal Industries (60) 3.90% 4.30% 2.20% 0.50% -0.40% 1.80%
34 - Fabricated Metal Products, Except Machinery And Transportation Equipment (78) 3.80% 4.10% 3.20% 3% 2.10% 3.30%
35 - Industrial And Commercial Machinery And Computer Equipment (299) 3.10% 3.20% 2.20% 0.80% 2.20% 3.10%
36 - Electronic And Other Electrical Equipment And Components, Except Computer Equipment (487) 0.30% 0.70% 0.10% -0.10% 0% -0.30%
37 - Transportation Equipment (156) 3.70% 3.90% 3.80% 4.20% 3.50% 3.30%
38 - Measuring, Analyzing, And Controlling Instruments; Photographic, Medical And Optical Goods; Watches And -4.80% -3.30% -1.90% -3.90% -2.10% -0.60%
Clocks (460)
39 - Miscellaneous Manufacturing Industries (70) 1.50% 1.40% 2.10% -2.90% 0.30% 0.50%
40 - Railroad Transportation (13) 22.20% 23.10% 42.60% 20.50% 19.30% 17.20%

Net profit margin is the % of total income you get to keep after all expenses and taxes are paid.
 BPI – Average Reply Time (ART)

For
benchmarking
 BPI – Tweets per Day

~260 for
benchmarking
Homework
Week 5
Worksheet: Quality management and
Benchmarking – 20 marks (EduPage)

QUIZ 2 PREPARATION