CAIE IGCSE Business Studies 4.5.1 why quality is important
Practise quality questions by stating quality methods, explaining benefits and judging whether control or assurance fits the business.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- State quality assurance benefits such as lower waste, fewer faults or teamwork.
- Explain methods such as quality control checks, complaint records or trained workers.
- Justify the best quality method after comparing cost, reliability and customer satisfaction.
4.5.1—Why quality is important and how quality may be achieved question 1
[Maximum number: 4]
NSL is a business based in country X．It manufactures food products including bread and breakfast cereals．NSL uses lean production in its factory．Maintaining quality is important．NSL imports 15% of its raw materials．Changes in country X＇s exchange rate can affect businesses which import raw materials．NSL＇s Marketing Manager knows the business should respond to changes in consumer spending patterns．She is aware that market research can be used to help make business decisions．
（c）Outline two reasons why maintaining quality is important for NSL．
Reason 1：
Reason 2：
Outline two reasons why maintaining quality is important for NSL.
Award 1 mark for each relevant reason (max 2).
Award 1 mark for each relevant reference to this business (max 2).
Points might include:
- Develop strong brand image / generate good publicity / better reputation [k] for its food [app]
- Keep customer loyalty/remain competitive [k] which may help as spending patterns change [app]
- Can charge high/premium prices [k] which may help cover any effect of exchange rates [app]
- Lower costs/less wastage [k] at the factory [app]
- Fewer customer complaints/returns [k]
- Attract new customers/increase sales [k]
- To meet legal requirements [k] such as food standards [app]
- It adds value [k]
Other appropriate responses should be credited.
To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made.
The following words are likely to be appropriate for this question:
- Food or related words such as ingredients, breakfast cereal, bread
- Manufacture
- (Consumer) spending patterns change
- Factory
- Exchange rates
- ( 15% of raw) materials are imported
- Lean production
Other appropriate examples can be credited.
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