Do you think that introducing new information technology in the office will help improve the profitability of TPW? Justify your answer
Knowledge [2] – award 1 mark for identification of relevant issue(s) Application [1] – award 1 mark if relevant reference made to TPW’s business Analysis [1] – award 1 mark for relevant development of point (s)
Evaluation [2] – justified decision made as to whether introducing new technology will help improve profitability of TPW. Either viewpoint is acceptable.
Relevant points might include:
• High cost of installing technology [k] which would increase fixed costs [an]
• Higher costs of training and maintenance for IT [k] which could lower profit margin [an]
• Help provide a better service [k] which could help attract more businesses [an]
• Quicker or more accurate work is possible [k] as machines are less likely to make mistakes [an] in financial calculations [app]
• Help cut labour costs [k] as technology could replace one (or more) of the three workers in the office [app]
• Risk of job losses could affect the motivation of employees [k] so work is slower or not as accurate so someone has to check accounts [app] which could cost more [an]
• More organised [k] as able to find documents on line [app] so able to complete work quicker [an]
Do not accept ‘more efficient’ on its own as too vague
Do not accept references to production of goods as this is a tertiary sector business