Syllabus: Cambridge - IGCSE Business Studies
Module: 4.1 Production of Goods and Services
Lesson: 4.1.3 How Technology has Changed and is Changing Production Methods

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Introduction

This article supports delivery of Cambridge IGCSE Business Studies, specifically section 4.1.3: How Technology has Changed and is Changing Production Methods. The module sits within Unit 4: Production of Goods and Services, and equips students with commercial understanding of how modern production has evolved.

As schools aim to provide whole-school career readiness and comply with Gatsby Benchmarks 4 and 5, this topic provides a practical entry point for integrating curriculum with workplace realities. It’s also highly adaptable for wider commercial awareness across departments.

Key Concepts

Students are expected to understand:

  • The impact of new technologies on production, including automation, robotics, and computer-aided manufacturing (CAM).

  • The advantages and disadvantages of using technology in production for businesses.

  • How technology affects costs, productivity, quality, flexibility, and competitiveness.

  • The changing nature of labour requirements – from manual work to more technically skilled roles.

This aligns directly with Cambridge’s syllabus expectations to explore:

“The use of technology in the production of goods and services including CAD and CAM and the benefits and drawbacks of these technologies”.

Real-World Relevance

The manufacturing sector offers numerous live examples:

  • Amazon warehouses use robotics for stock movement, minimising human labour while increasing efficiency. However, it raises questions about job displacement and working conditions.

  • Tesla’s gigafactories employ advanced automation and AI systems to streamline electric vehicle production. While efficient, the system still relies on human oversight and technical roles.

  • In the UK, Greggs has automated some bakery lines to maintain product consistency, freeing staff for customer service roles – a practical case of technology augmenting rather than replacing human labour.

These case studies allow students to see commercial decisions in action: balancing efficiency, ethics, cost, and customer satisfaction.

How It’s Assessed

Assessment for this subtopic often includes:

  • Short-answer questions asking students to define or describe a technology or benefit.

  • Data-response questions presenting scenarios where students must analyse the impact of introducing new tech.

  • Extended writing (6 or 8 mark) questions requiring evaluation of technology’s effects on cost or quality.

Typical command words:

  • Identify – state one example of a production technology

  • Explain – how CAM improves quality

  • Analyse – the impact of automation on employment

  • Evaluate – should a small business invest in automated machinery?

Encourage students to use structured responses like Point, Explanation, Impact, Evaluation, which supports both assessment success and commercial awareness.

Enterprise Skills Integration

This topic lends itself to embedding essential enterprise and workplace skills:

  • Decision-making – Should a business invest in new tech now or wait?

  • Problem-solving – How to maintain quality while reducing costs?

  • Commercial awareness – Understanding tech as a strategic investment, not just a tool.

Using simulation-based approaches (as in Skills Hub tools), students can take on roles such as production managers or financial directors deciding on capital investment. These exercises foster real-world decision logic and higher-order thinking.

Careers Links

This lesson naturally supports Gatsby Benchmark 4 by linking curriculum learning to:

  • Engineering (robotics technicians, mechanical engineers)

  • IT and Software (CAD designers, automation programmers)

  • Operations management (production planning, logistics)

  • Retail and logistics (supply chain analysts)

With support from tools like Skills Hub Futures, schools can provide role-specific insights, simulate workplace scenarios, and introduce industry mentors.

This also meets Benchmarks 5 and 6 when employer insights or simulations are integrated, allowing students to experience decisions professionals face in technology-led sectors.

Teaching Notes

Recommended strategies:

  • Use case study comparison tasks (e.g., Greggs vs Tesla) to build evaluation skills.

  • Bring in video interviews from real production environments or use virtual tours if available.

  • Set a mini-debate: “Automation helps workers” vs “Automation replaces workers”.

Common misconceptions:

  • Students may think technology only replaces jobs. Ensure lessons include the creation of new, skilled roles too.

  • Some confuse digital marketing tools with production technology – clarify this early.

Extension ideas:

  • Design a simple production flow using both traditional and tech-based methods. Students could simulate cost-benefit analysis.

  • Use tools like the Break-even Calculator from Enterprise Skills to explore the financial viability of investing in new machinery.

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