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Business Paper 2 - Coggle Diagram

- - - - Advantages
        
        Useful when customers need advice and personal service from assistants
        
        The customer can bargain with the seller over the price or the services
        
        For some services it may be unavoidable (restaurants)
        
        Can help sales in B2B selling - discuss detailed specifications of equipment
      - Disadvantages
        
        May not always be convenient for customers
        
        Profits may be reduced for the business if the price has been bargained for
        
        Retailer costs are high if expensive shops are needed
      - When the buyer and seller meet (e.g in a shop)
    - - Advantages
        
        May cost less than selling from a shop
        
        Can increase sales as the customer can ask questions and bargain about the price
      - Disadvantages
        
        Sellers may 'cold call' which may be a nuisance to customers
        
        Costs involved such as warehousing fees and telesales workers
  - - - Advantages
        
        Stops poor quality goods from being sold
        
        Production can continue whilst inspection takes place - output is not affected
        
        Producing good quality products will improve the reputation of the business
      - Disadvantages
        
        It does not prevent waste
        
        Inspection can be costly
        
        It does not encourage workers to be responsible for quality
    - - Advantages
        
        It should reduce wastage and thus costs
        
        Workers may feel responsible and motivated to take care
        
        If good quality goods are produced it will increase the reputation of the business
      - Disadvantages
        
        Workers may feel stressed about the responsibility of having to check the quality of their own work
  - - - Technology can operate 24/7 and does not need a break
      - Human safety is improved as machines can do dangerous jobs
      - production can be flexible as robots can be programmed to change what is produced
      - Waste is reduced as machines are usually more accurate than humans
      - Machines can replace workers, reducing costs
      - Worker productivity is increased as computers help them to work faster and produce more
    - - The business may need to recruit skilled labour to program the computers controlling production
      - Workers may need to be trained to use the new technology and training costs money
      - Machines can break down, disrupting production
      - New technology may be expensive to buy
      - Customers may not like automation, for example automated telephone response systems
      - The storage of data must meet data protection laws
  - - - Disadvantages
        
        Customers may not be able to ask questions
        
        Goods may not be as described or pictured online. Customers may return the goods but often at their own cost.
        
        Customers may be at risk of personal data theft if computer systems are not secure
        
        Not everyone has access to or can use computer technology
      - Advantages
        
        Customers can buy 24/7
        
        Customers can compare prices across multiple sites
        
        Choice has increased as customers can buy across the world
    - - Advantages
        
        It is possible to sell 24/7
        
        Markets have increased so it is much easier to sell around the world
        
        Web designers can make a business look attractive at little cost
        
        The costs of selling are usually much lower due to savings on rental of premises and a reduction in the number of workers that need to be employed
      - Disadvantages
        
        Competition has increased (including greater competition from abroad)
        
        E-commerce businesses need to provide cyber security for themselves and for customers
        
        As technology develops so must the e-commerce business which can add costs and lead to changes in the operation of a business
- - - - Costs may be lower for numerous reasons
        
        Workers are paid fairly and work in safe conditions are well-motivated and productivity is high
        
        Less likely to look for a job elsewhere so retention is high