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Unformatted text preview: 3. To what extent can improvements in productive flow and product quality lead to an increase in sales and profit? Use examples to critically examine the links. In this essay I will analyze whether improvements in productive flow and product quality will result in an increase in sales and profit. Productive flow can be defined as a production process which consists in producing a good in great quantities through a standardized process which is known as an assembly line an example of such model is Ford’s model of production. In my essay I will analyze whether improving this process will result in an increase in profits and sales. It is also important to underline that an increase in sales does not always result in an increase in profit. Sales are the total number of products sold, whilst profit is the financial benefit that can arise from sales, improving efficiency, or other factors. In one hand It could be said that an improvement in the production flow and product quality, will result in an increase in sales. By improving the production method, which could be done for example by improving machinery, because in the assembly line very small and cheap changes on the machinery result in a big difference in productivity, thus decreasing the costs of production per unit, will result in a cheaper product to produce which can make it a more accessible product (if the producer decides so) and thus, decrease the sales price, making it more attractive the lower income classes to buy and generally more attractive to the buyer. This is a very income classes to buy and generally more attractive to the buyer....
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This note was uploaded on 03/28/2011 for the course MN 1015 taught by Professor Evangelos during the Spring '08 term at Royal Holloway.
- Spring '08