The social and technological environment of business

One advantage for a business of automating its operations is:

A higher maintenance costs

B improved quality

C lower productivity

D no training will be required

Which is an advantage for a manufacturer of using robotics?

A Greater productivity

B Initial investment cost

C Operatives will require training

D Will not break down

Text 2

AstraZeneca plc

AstraZeneca plc (AZ) is a multinational pharmaceutical company that operates in over 100 countries around the world. AZ develops treatments for a range of diseases. It sells its medicines and vaccines worldwide. Its headquarters are in Cambridge, England. In 2021 AZ’s sales revenue was £37 417m, from which it made £24 980m gross profit.

AZ has a code of ethics, which is at the centre of everything that it does. The company has approximately 75 000 employees worldwide; 10 000 of these work in its three research and development centres.

AZ uses technology throughout its operations to provide high quality products for its customers. These customers include doctors, hospitals and governments from around the globe.

In the UK, AZ has changed the way it sells its products. Previously, sales staff would visit medical professionals; now it uses a call centre and website where medical professionals can order products and samples. AZ says this means it can now provide a high quality service that meets the needs of its customers at a lower cost.

Identify two ethical considerations a business may have.

State two reasons why quality in the production of goods is important to a business.

Analyse one reason why it is important to AZ that its call centre employees have good product knowledge.

Calculate AZ’s gross profit margin for 2021.

Show your workings

Answer........

Explain one way technology might affect production at AZ.

Analyse one advantage and one disadvantage to AZ of operating as a multinational company.

Recommend whether AZ should continue to operate as a multinational company.

Identify two factors that have led to increased globalisation.

Explain one possible advantage to a business of operating as a multinational.

Calculate, using the figures shown in Fig. 1, the number of Barclays plc’s UK personal banking customers who are likely to have used online banking in 2020.

Show your workings.

Answer........

Identify two impacts that e-commerce might have on business activity.

Analyse one way Barclays plc could treat its customers ethically.

Identify two factors that may influence whether a business invests in new computer technology.

Evaluate possible impacts on Barclays plc of investing in computer technology to provide

online banking services to its customers.