IGCSE, A Level Business Student Forum

4. Analyse the advantages of specialization for services sector business. [6]

Possible Structure:
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

[KN] Enhanced Expertise.
[AN] Businesses focusing on a specific service will have a better and increased quality than businesses providing a range of services.
[AN+] Better quality would mean customers being satisfied and customer satisfaction would lead to customer loyalty and a better brand image.

[KN] Opportunities for innovation.
[AN] Businesses providing one service will try to improve and innovate their product as much as possible and will spend on research and development.
[AN+] Thus if even a competitor tries to enter the market, the business will be ahead of them giving them an edge over their competitors keeping the maximum market share, and generating more sales due to their improved service.

[KN] Less wastage of resources
[AN]As workers provide the services, they are best at, there are less chances of mistakes.
[AN+] Therefore, quality is built into the entire process of providing the services. Hence, this helps to maximize customer satisfaction and improve brand image.

[KN] Increases productivity of all workers in terms of efficiency
[AN] More customers can be catered in less time; quick delivery to customers
[AN] Better customer feedback, capture a greater market share.

Maham fatima wrote: ↑Tue Oct 24, 2023 12:06 am [KN] Less wastage of resources
[AN]As workers provide the services, they are best at, there are less chances of mistakes.
[AN+] Therefore, quality is built into the entire process of providing the services. Hence, this helps to maximize customer satisfaction and improve brand image.

[KN] Increases productivity of all workers in terms of efficiency
[AN] More customers can be catered in less time; quick delivery to customers
[AN] Better customer feedback, capture a greater market share.

Perfect Answer!

[KN] Improved efficiency
[AN] In specialisation workers provide the services they are best at which means that quality of the products will be of high quality and there will be little or no mistakes
[AN+]This will lead to improved productivity for the business as there will be less wastages in production

[KN]Increased productivity and efficiency
[AN]More customers can be dealt with in less time(quicker delivery to customers)
[AN+]There will be better customer feedback which may lead to greater market share

[KN]Increasedd productivity and efficiency
[AN]greater customers may be handled in much less time(faster transport to clients)
[AN+]There could be higher client comments which may result in greater marketplace protein

[KN] specialisation helps the business focus only on one type of service alone and therefore all resources like intellectual capital is used for it
[AN] improves quality of services
[AN+] gives a competitive edge to the business as customers start preferring the business

[KN] specialisation makes labour expert in tasks they perform and therefore less chances of mistakes
[AN] no need of strict quality assurance and so costs and resources used upon it reduce
[AN+] resources can be use for expansion without increasing cost by a very large amount

(Kn) more people can be catered (an) since every employee has a duty of their own there wont be a need of one person handling everything rather the services being divided (an+) this can lead to customer satisfaction as wait time for the provision of services will be reduced
(Kn) higher quality services (an) the service providers will have in depth knowledge and skills of what they do so their services wont disappoint (an+) this will improve brand image and attract more people to acquire such services

[KN] Offering better services to customers.
[AN] Specialized business can provide unique services to customers to meet the needs of the customers
[AN+] This leads towards highler level or customers and loyalty.
[KN] Better efficiency.
[AN] Customers can be provided with the services quickly and in less time.
[AN+] This leads towards faster services delivery and reduces costs.

[KN] Efficiency and Productivity
[AN] With a limited range of services and they can optimise workflows and efficiently use specialised tools and develop efficient procedures.
[AN+] Thus resulting in increased productivity and reduced costs.

[KN] Expertise and Quality
[AN] High quality services would be produced which will increase the efficiency levels as high quality goods would be produced.
[AN+] This leads to higher efficiency levels and faster and quicker services.

[KN]better efficency
[AN]increased customer satisfaction
[AN+]loyal customers increased market share

[KN]economies of scale
[AN]allowing them to invest in better equipment
[AN+]They can offer products or services at lower prices making it difficult for smaller rivals to compete.

[KN]increase in efficiency and productivity
[AN]large no of customers can be handle in less time(delivery to customers in less time)
[AN+] thus leads to greater market share due to customer satisfaction

[KN]Better quality services
[AN]the service providers will have in depth knowledge and skills of what they do so their services wont disappoint
[AN+] This will increase brand image and customer loyalty.

[KN] Enhanced Expertise
[AN] Specialization allows service providers to focus on a specific area or niche, leading to the development of deep expertise and knowledge in that particular domain. [AN] This expertise enables them to better understand customer needs, trends, and industry best practices, which ultimately results in higher-quality services.
[KN] Increased Efficiency
[AN] Specialized service providers can streamline their processes and workflows to cater to a particular type of service.
[AN+] This efficiency leads to faster service delivery, reduced costs, and improved resource allocation.

[KN] Less wastage of resources
[AN]As workers provide the services, they are best at, there are low chances of mistakes as they make use of all the factors of production more efficiently
[AN+] Therefore, quality is built into the entire process of providing the services. Hence, this helps to maximize customer satisfaction and improve brand image.

[KN] Increases productivity of all workers in terms of efficiency
[AN] More customers can be attended to in a short period and so this can lead to higher customer satisfaction
[AN] Better customer response causes the demand for your service to increase than the competitors and this helps you to capture a greater market share.

[KN] Less chances of errors.
[AN] Better and increase in quality of services.
[AN+] Will lead to customer satisfaction and better brand image.

[KN] Cost and time saved.
[AN] As workers provide the services they r best at so there would be no need of quality assurance hence cost will be saved.
[AN+] Thus this will lead to higher quality services with cheerful customer base.