specialisation

• What is specialization in business?

  Focusing on a limited range of goods
• Why should a good business ensure employees work on suitable tasks?

  To match tasks with employees' skills
• What is the term for dividing employees based on their skills?

  Division of labour
• What is a benefit of specialization for businesses?

  Improvement in quality and efficiency
• What is a drawback of specialization for businesses?

  Training employees can be expensive
• How can specialization affect a business's reputation?

  It can develop a positive reputation
• What is a potential negative effect of specialization on employees?

  Employees may become bored with tasks
• What is specialisation?

  When a person, business, region or country focuses on producing a limited range (small number) of goods and services
• Why do good businesses ensure that employees work on tasks that best suit their skills?

  This is called division of labour
• How are employees divided in a business that practices specialisation?

  Based on their skills and which tasks they specialise in
• What are the benefits of specialisation for a business?

  • Improvement in quality and efficiency can lead to larger profits
  • May develop a positive reputation for a particular product or service
  • May be able to charge higher prices
  • Employees become faster at producing the goods
• What are the drawbacks of specialisation for a business?

  • Training employees is often expensive
  • Employees may become bored with tasks, leading to dissatisfaction and turnover
  • The product or service can become out of date
  • Business may become too dependent on the product/service, leading to losses if it becomes outdated
• What are the benefits of specialisation for employees?

  • Employees may be paid more if their skills are in short supply
  • The skills they have may allow them to choose the job they want and get associated benefits (car, flexible hours)
• What are the drawbacks of specialisation for employees?

  • Employees may become bored with only focusing on one or two skills
  • Machines may be able to replace employees who specialize in certain tasks
• What are the benefits of specialisation for the world?

  • Scarce resources are being used more effectively
  • Countries can specialize in trade for goods and services they don't produce
  • People benefit from the jobs and incomes that come from producing specialized products or services
• What are the drawbacks of specialisation for the world?

  • Some countries struggle to produce products or services that are required globally
  • Countries can suddenly become beaten on price and may have recessions, meaning their entire workforce is no longer in demand
• What is the key reason a good business will ensure employees work on tasks that best suit their skills?

  This is called division of labour
• If a business becomes too dependent on a specialized product or service, what can happen if that product or service becomes out of date?

  The business can suffer losses
• How does specialization allow countries to benefit through trade?

  Countries can specialize in producing goods and services they are best at, and trade for other goods and services they don't produce
• What is a potential drawback of specialization for employees?

  Employees may become bored with only focusing on one or two skills
• How can specialization lead to a country experiencing a recession?

  If a country becomes too specialized, it can be beaten on price by other countries, leading to a recession and loss of demand for its workforce
• What is a potential benefit of specialization for employees?

  The skills they have may allow them to choose the job they want and get associated benefits
• How can specialization lead to more efficient use of scarce resources?

  By having countries and businesses focus on producing a limited range of goods and services they are best at
• How can specialization lead to a business developing a positive reputation?

  By focusing on producing a particular product or service very well, the business can become known for that specialty
• What is a potential drawback of specialization for a business?

  The product or service in which the business specializes can become out of date
• How can specialization allow a business to charge higher prices?

  By offering a specialized product or service that customers are willing to pay more for
• How can specialization lead to employees becoming faster at producing goods?

  By repeatedly performing the same specialized tasks, employees develop greater efficiency and speed
• What is a potential drawback of specialization for employees?

  Machines may be able to replace employees who specialize in certain tasks
• How can specialization lead to a business becoming too dependent on a product or service?

  If the business focuses too narrowly on one specialized product or service, it becomes vulnerable if that product or service becomes outdated
• How can specialization lead to a country struggling to produce goods and services required globally?

  If a country becomes too specialized in producing certain goods and services, it may lack the capacity to produce other goods and services in high global demand
• What is a potential benefit of specialization for a business?

  Improvement in quality and efficiency can lead to larger profits
• How can specialization allow a country to benefit through trade?

  Countries can specialize in producing goods and services they are best at, and trade for other goods and services they don't produce
• How can specialization lead to employees becoming bored and dissatisfied?

  By only focusing on a limited number of specialized tasks, employees may become bored and unsatisfied with their work
• What is a potential drawback of specialization for a business?

  Training employees will often be expensive
• How can specialization lead to a business being able to charge higher prices?

  By offering a specialized product or service that customers are willing to pay more for
• What is a potential benefit of specialization for employees?

  Employees may be paid more if their skills are in short supply
• How can specialization lead to a country experiencing a recession?

  If a country becomes too specialized, it can be beaten on price by other countries, leading to a recession and loss of demand for its workforce
• What is a potential drawback of specialization for a business?

  The product or service in which the business specializes can become out of date
• How can specialization lead to employees becoming dissatisfied?

  By only focusing on a limited number of specialized tasks, employees may become bored and unsatisfied with their work
• What is a potential drawback of specialization for a business?

  The employees may become bored with tasks, this may cause employee dissatisfaction and thus may cause the employee to leave the business