IGCSE, A Level Business Student Forum

[KN] Higher productivity means producing more output from the same amount of inputs, which reduces average costs and makes the business more competitive.
[APP] For example, a factory that increases productivity from 100 to 150 units per worker per day spreads its labour and machine costs over more products.
[AN] This allows the business to lower its selling price or earn a higher profit margin, making it more attractive to customers in a crowded market improving its image.
[AN+] As a result, the firm can win a larger market share strengthen its position against rivals and improve long-term financial stability.

[KN] Higher productivity also helps a business meet rising customer demand without needing a proportional increase in workers, machines or materials, which are often expensive or scarce.
[APP] For instance, if demand increases suddenly, a manufacturer with high productivity can increase its output quickly using existing resources.
[AN] This ensures customer orders are delivered on time, preventing lost sales and avoiding the risk of customers switching to competitors.
MODERATOR COMMENT:
>OVERALL ANSWER WAS FINE BUT MISSED ELEMENT IN AN 2
[AN+] Over time, reliable delivery builds customer trust encourages repeat purchases and strengthens the business’s reputation in the industry.

[KN]: Higher productivity is important as higher productivity leads to more output which also allows business to pay higher wages to employees.
[APP]: For example, in a car manufacturing business if workers produce more cars per day this would lead to more cars being made in less time (more output).
[AN]: Thus, this would attract more customers and lead to customer loyalty which would increase profit and improve living standards of people due to higher wages.
[AN+]: Furthermore, this would reduce poverty and improve economy of sales.

[KN]: Another reason is that higher productivity is important as it can reduce the cost per unit of production, as more goods are produced with same resources.
[APP]: For example, in a chocolate factory, if workers package more chocolate bars in an hour this reduces unit cost as more chocolate bars are being packed in less time saving time and electricity costs.
[AN]: Thus, this allows business to sell products at a cheaper price without having to face loss this would further lead to improved brand image or reputation of business and would also lead to more competition of business in market.
moderator comment:
>REBUILD YOUR KN 1
>KN 2 WAS FINE BUT IN THIS MISSED ELEMENTS
4/8
[AN+]: Furthermore, this would lead to long term success of business and more profit would be gained which could be further reinvested to enhance the business.

[kn] Higher productivity means making more with less, cutting costs, and boosting competitiveness.
[app] for example, a clothing company buys fabric in bulk.
[an] This increases profits, ability to re-invest, and expansion into new markets.
[an+] This can result in long-term business growth.
[kn] Higher productivity lets a firm meet growing customer demand without needing more resources.
[app] A factory uses faster machines to produce more shoes without hiring extra workers.
[an] This ensures timely delivery, higher customer satisfaction, and reduced production cost.
[an+] This results in a better business reputation.

1.KN: Higher productivity means more output is produced with the same inputs, lowering average costs and improving the firm’s competitiveness.
APP: For example, a furniture factory producing more tables per worker reduces labour cost per unit.
AN: Lower costs allow the business to offer lower prices or keep higher profit margins.
AN+: This strengthens the business’s position in the market and helps it compete against rival manufacturers.
2.KN: Higher productivity allows a firm to meet increasing customer demand without needing more workers or machinery.
APP: For instance, a textile manufacturer can fulfil a large seasonal order without hiring extra staff.
AN: This ensures orders are completed on time and reduces delays.
AN+: As a result, the business maintains customer satisfaction and secures repeat contracts.