AQA · GCSE · Business

    Course version: 8132 · Version from Sept 2017

    Students should be aware of the possible quality issues as businesses…

    Full specification wording

    The concept of quality: Students should be aware of the possible quality issues as businesses grow, particularly if outsourcing and franchising is used.

    As a business expands, maintaining consistent quality becomes harder.

    Checked against the AQA 8132 specification (opens in a new tab) on .

    • Point 6 of 13
    • 3 key terms

    Study notes

    From the checked teaching notes for this specification point.

    The idea

    As a business expands, maintaining consistent quality becomes harder. Larger output can stretch staff, equipment and management control, so defects or delays may rise. Outsourcing means paying another business to complete tasks; the original business loses direct control, so quality depends on the supplier's standards and communication. Franchising lets franchisees run outlets using the brand; each franchisee may interpret procedures differently, creating inconsistent customer experiences. For example, a café chain that outsources food production may find portion sizes vary, while a franchised outlet may deliver slower service. These issues can damage reputation, reduce repeat custom and increase costs from reworking or refunds.

    What earns the marks

    • Explains that growth increases the difficulty of maintaining consistent quality because managers cannot personally oversee every task.
    • Describes outsourcing as using an external supplier, which reduces direct control over quality standards.
    • Describes franchising as allowing independent franchisees to operate under the brand, which can lead to inconsistent service or product quality.
    • Analyses how quality issues from growth can damage reputation, reduce customer loyalty and increase costs such as refunds or reworking.
    • Applies the point to a specific business context, such as a growing restaurant chain using a franchise model.

    Common mistakes and how to put them right

    • Assuming growth automatically improves quality.

      Put it right: Growth can strain systems and lead to quality problems unless managed carefully.

    • Confusing outsourcing with franchising.

      Put it right: Outsourcing uses external suppliers for tasks, while franchising licenses the brand to independent operators.

    • Ignoring the impact on the original business.

      Put it right: Quality issues can harm the brand owner's reputation even if a franchisee or supplier causes them.

    Exam tips

    • Use a named business example to show how outsourcing or franchising creates a specific quality issue.
    • Link each quality issue to a consequence, such as lost sales or higher costs, to reach analysis marks.
    • For evaluation, weigh whether the benefits of growth outweigh the quality risks in the given context.

    Try the lesson

    The start of the The concept of quality: Students should be aware of the possible quality issues as businesses grow, particularly if outsourcing and franchising is used. lesson, made from checked teaching notes for this specification point.

    Have a go first

    Which of the following is a possible quality issue for a business that uses outsourcing to grow?

    Listen

    As a business expands, maintaining consistent quality becomes harder. Larger output can stretch staff, equipment and management control, so defects or delays may rise. Outsourcing means paying another business to complete tasks; the original business loses direct control, so quality depends on the supplier's standards and communication. Franchising lets franchisees run outlets using the brand; each franchisee may interpret procedures differently, creating inconsistent customer experiences. For example, a café chain that outsources food production may find portion sizes vary, while a franchised outlet may deliver slower service. These issues can damage reputation, reduce repeat custom and increase costs from reworking or refunds. A strong answer earns marks for these points. Explains that growth increases the difficulty of maintaining consistent quality because managers cannot personally oversee every task. Describes outsourcing as using an external supplier, which reduces direct control over quality standards. Describes franchising as allowing independent franchisees to operate under the brand, which can lead to inconsistent service or product quality. Analyses how quality issues from growth can damage reputation, reduce customer loyalty and increase costs such as refunds or reworking. A common slip: Assuming growth automatically improves quality. Instead, growth can strain systems and lead to quality problems unless managed carefully. Exam tip: Use a named business example to show how outsourcing or franchising creates a specific quality issue.

    See it

    A top-down flowchart. At the top, a node labelled Business growth branches into three: Harder to maintain consistent quality, Outsourcing and Franchising. Outsourcing leads to Loses direct control, which leads to Quality depends on supplier's standards and communication. Franchising leads to Franchisees may interpret procedures differently, which leads to Inconsistent customer experiences. Harder to maintain consistent quality, Quality depends on supplier's standards and communication, and Inconsistent customer experiences all feed into a single node, Quality issues. Quality issues then branches into three outcomes: Damaged reputation, Reduced repeat custom, and Increased costs from reworking or refunds.
    Shows how business growth can lead to quality issues through outsourcing and franchising, and the consequences for reputation, repeat custom and costs.

    Key words

    Say what each word means before you turn the card.

    Outsourcing

    Try answering aloud or in your head before turning the card.

    Franchising

    Try answering aloud or in your head before turning the card.

    Business growth

    Try answering aloud or in your head before turning the card.

    See every definition
    Outsourcing
    Paying another business to complete tasks, so the original business loses direct control and quality depends on the supplier's standards and communication.
    Franchising
    Letting franchisees run outlets using the brand, though each franchisee may interpret procedures differently, creating inconsistent customer experiences.
    Business growth
    Expansion that makes maintaining consistent quality harder, as larger output can stretch staff, equipment and management control.

    Label the diagram

    Some boxes have lost their names. Pick the right name for each number.

    The diagram again, with 3 boxes numbered instead of named. A top-down flowchart. At the top, a node labelled Business growth branches into three: Harder to maintain consistent quality, Outsourcing and Franchising. Outsourcing leads to Loses direct control, which leads to Quality depends on supplier's standards and communication. Franchising leads to Franchisees may interpret procedures differently, which leads to Inconsistent customer experiences. Harder to maintain consistent quality, Quality depends on supplier's standards and communication, and Inconsistent customer experiences all feed into a single node, Quality issues. Quality issues then branches into three outcomes: Damaged reputation, Reduced repeat custom, and Increased costs from reworking or refunds.
    • 1Box 1

    • 2Box 2

    • 3Box 3

    0 of 3 labelled

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