IGCSE, A Level Business Student Forum

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

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

[KN]
[AN]
[AN+]

[KN]Dependent on specific Expertise.
[AN] Specialization means business focusing solely on a particular service, leading to business fully relying on demand.
[AN+] Businesses will struggle to diversify and will potentially lead to significant losses when demand falls for that specific service.

[KN]Difficult to find Skilled Labour.
[AN] Specialization will require experts and businesses may not be able to find the specific one if their required skill is not in much demand.
[AN+] Businesses will have to bear extra costs while providing them with training and education and will also waste time training them leading to more costs incurred to business.

[KN]Quality may suffer if workers become bored by the lack of variety in their job.
[AN] This can lead to poor quality of output produced as workers will not be working with efficiency.
[AN+] thus this will ensure a bumpy ride for the business as sales will be affected as well, and customers
may also be lost which means brand image will be at a risky edge.

[KN] Absence of an worker can be a serious issue.
[AN]since workers provide the services they are excellent at and so because of their unavailability no other worker will be able to perform
his/her tasks to that level of perfection, hence this can lead to loss of efficiency which can also be a reason for customer dissatisfaction.
[AN+] Moreover this can be a reason of loss of opportunities which can endanger future growth for a service sector business.

Comment: Perfect choice of words, perfect analysis!!!

[KN] workers become complacent
[AN] workers will not be challenged to different task as they don't learn new skills
[AN+] leading to a decline in their productivity
[KN] leads to a lack of innovation, as employees become experts in their field
[AN] creating difficulties for them to learn other skills or be open to new ideas
[AN+] Lack of employee feedback may lead towards outdated methods being followed by the business. (Lack of adaptability to new methods)

[KN] specialisation narrows the services a business can provide
[AN] this limit in options would hinder innovation
[AN+] this would mean the business would fall behind in the long run and not keep up with its lack of innovation

[KN] this would also lead to less flexibility and adaptation to new market demands
[AN] this would mean the business would not be able to fulfil its customers needs as it cant change its production
[AN+] this worsens customer loyalty and relations with the business

[KN]Lack of variety in worker's job
[AN]This can lead to a decrease in business efficiency as good quality services wont be produced due to the worker not doing his job with all his effort and heart maybe due to its repetitive and boring nature
[AN+]This will then lead to a negative impact on the business's brand image and people may opt for competitors services as these services may not be of high quality

[KN]Business may not able to to mold production according to changes in market
[AN]Due to the services being specialized the business will not be able to change according to what the market demands leading to them not meeting customer expectations and demands
[AN+]This will lead to a worsened brand image as the services may deemed outdated by customers

[KN] Workers become dependent on each other
[AN] if a worker is absent, the whole process of providing services gets effected as deliveries to customers may also be delayed
[AN] this may increase customer complaints which decreases customer satisfaction.


[KN] Increase boredom
[AN] After providing the same service repeatedly workers may get bored which reduces their motivation
[AN] hence, leading to low efficiency

[KN]Decrease in employs motivation
[AN]When a work would be performing the same task over and over, The employ would be bored after a while which would end up being anti motivational for the worker
[AN+]Which would effect the business's productivity negatively

[KN]Decrease in services provided by the business
[AN]When a business is hiring an employ which is expert from other employs the business would be also paying in an higher amount.
[AN+]This would effect the other services provided by the business as an costly worker would be employed.

Ibrahim Aamir wrote: ↑Tue Oct 24, 2023 7:28 pm [KN]Decrease in employs motivation
[AN]When a work would be performing the same task over and over, The employ would be bored after a while which would end up being anti motivational for the worker
[AN+]Which would effect the business's productivity negatively

[KN]Decrease in services provided by the business
[AN]When a business is hiring an employ which is expert from other employs the business would be also paying in an higher amount.
[AN+]This would effect the other services provided by the business as an costly worker would be employed.

The analysis and further analysis of the second point is not linking up with the knowledge point. Also the analysis of The first point could be a bit improved.

(Kn)limits flexibility (an) the firm having specialised labour will only provide the services that they are best at and no other(an+) due to this if there is anyone absent no one can replace the absentee due to such uniqueness
(Kn) vulnerable to market changes (an) due to specialisation if there is a change in customer tastes or fashion the business wont be able to cope and hence fail(an+) a specialised service business, blockbuster that gave dvd rental was set out of business due to inability to respond to such changes

[kn] workers do not multitask, more labour has to be hired for each and every task
[an] increases cost of production
[an+] lower profit margins
[kn] resources cannot be shifted to the production of another service in case of lower demand for existing service and also makes the business less flexible
[an] makes business less responsive to changes in market demand
[an+] harms long run sustainable growth of the business

6. Analyze the disadvantages of specialization for services sector business. [6]

[KN]Dependency on Skilled Workforce
[AN]specialized services need highly skilled workers. they may need to invest a hefty amount on recruitment, training, and maintaining specialized talent.
[AN+]If a specialized employee leaves or are difficult to replace, it can cause disturbance in service delivery and affect the business's performance. a;lso, specialized labor costs could be higher, affecting the profitability.

[KN]the business could lack in adaptability or flexibility leading it to a loss
[AN]Specialized businesses may struggle to adapt to changing market conditions or customer needs as they are stuck into a specific product
[AN+]it further delays their ability to innovate and respond to new trends. This could lead to them being outdated in the long term.

(Kn) Workers eventually become bored (an) specialization in a business eventually will decrease the motivation and productivity required for the task (an+) therefore this will decrease efficiency in the business.

(Kn) Labor being absent will be a problem (an) if the worker is specialized in its job, and does it best when absent can lead to slowing down the working process (an+) therefore, product/ service will not meet customer expectations, hence effects brand image.

[KN] Limited Growth Opportunities
[AN] Expansion and growth opportunities may be limited for specialized service providers. They may find it difficult to enter new markets.
[AN+] They may find it difficult to enter new markets.

[KN] less jobs for workers
[AN] this will decrease business efficiency as less skilled workers would not be available to do make quality goods.
[AN+] thus leading to reduction in output of the firm as goods would be not of high quality thus less brand loyalty

KN]Decrease in employs motivation
[AN]When a work would be performing the same task over and over, The employ would be bored after a while which would end up being anti motivational for the worker
[AN+]Which would effect the business's productivity negatively

[KN] workers will rely on each other
[AN] if any worker is not present the whole process of providing services will slow down
[AN+] and due to delay in delivery there will be customer complaints which will effect brand image.