We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Factors of Production Essay Sample

essay
The whole doc is available only for registered users OPEN DOC

Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

Factors of Production Essay Sample

1.1 Nature of Business Activity

Factors of Production

Land … all the natural resources

Labour … all the human effort (physical and mental)

Capital … the manufactured resource used in the production process

Enterprise … the unique ability certain people have in organising factors of production

Combining the factors
Labour Intensive Capital Intensive

Division of Labour and Job Specialization
Benefits  Increased Production  Lower Costs  Efficiency  Standardization  Employment is increased Disadvantages  Products are similar/standardized  Increased interdependance  Small business cannot compete  Boring repetitive work

Division of Labour and Job Specialization

Business Functions

Functions of Business
Marketing  Finance  Human Resource Management  Operations Management  Relationships between them 

Marketing
Responsible for  Market research and analysis  Pricing  Promotion  How to sell and distribute

Finance
Monitors the flow of finance in and out of the business  Keeps and analyzes financial accounts  Provides financial information to management

Human Resource Management
Identifies the workforce needs of business  Recruits  Selects and trains  Creates motivational systems  Handles employment contracts  Deals with redundancy or redeployment of staff

Operations Management
Responsible for adequate resources being available for production  Maintains production levels  Maintains quality levels  In charge of production efficiency

Business Activity

Business Sectors
3 types of business sectors  Primary  Secondary  Tertiary As economies develop in countries, business sectors tend to gravitate from primary to tertiary changing the economic structures of countries.

Primary … raw materials and natural resources are extracted

Primary Sector

First stage of the production process Extraction of natural resources: •  Mining •  Fishing •  Forestry •  Agricultural

Renewable vs. Nonrenewable

Secondary Sector

Secondary … output from primary is processed into manufactured goods

Secondary

Second stage of production Products from primary stage are processed into manufactured goods •  Consumer goods •  Producer goods

Tertiary Sector

Tertiary … production of service rather than goods

Tertiary
Production/Provision of services rather than goods Provide support to the first 2 stages of production Can provide services to the public or the state

Chains of Production
Interdependence between industry sectors

Relationship to Development

As an economy/country develops, more of the workforce migrates to the higher sector In China there has been a steady migration of workers from agriculture to manufacturing As all the factories moved from Hong Kong to China, there has been a transition to services economy.

Activity

In a groups of 3 Select any product in your household Identify ALL the types of companies involved in chain of production For each company Classify the sector of the company Determine the factors of production and outputs

Changes in Economic Structure
Industrialization The growing importance of the secondary sector on the economy. ? When did this occur in our country ? What was the impact on our society ? What benefits have we enjoyed

Did you say:

Increase standard of living Reduced imports into our country and increased exports to other countries More jobs More profits to companies, so more taxes to governments Raw materials worth more to other countries because they have been processed

What are potential problems?

Did you say:

Creates depopulation in rural areas as people gravitate towards jobs in manufacturing Stresses on farming and agriculture Difficult to find enough qualified workers Imports may increase to satisfy needs of raw materials Pollution

We can write a custom essay

According to Your Specific Requirements

Order an essay

You May Also Find These Documents Helpful

Night Time Economy

The UK boasts of one of the most historical and tourists attractions and attracts tourists from all parts of the world. The UK economy is also home to an array of leisure activities such as London Fashion Week, Frieze Art Festival, The Brits, MOBO’s or The BAFTA’s, etc. There is also lots of entertainment industry in the UK, including independent bar owners, nightclub and restaurant...

The Zimbabwean economy

1.0 INTRODUCTION Working capital can be said to be the life blood of every organization. It is an organizations ability to effectively manage its working capital that leads to its success or collapse. This position subjects working capital managers to enormous pressure especially in an economy that’s as volatile as that of Zimbabwe. 1.1 BACKGROUND TO THE PROBLEM The Zimbabwean economy was deemed hyperinflationary a...

Setting up a realistic budget is the...

The key to every organization’s success is to set a realistic budget that can be efficiently revised through the year. In order to estimate revenues and expenses realistically, accurate information must be gathered. As the “budget” can be defined “the strategy of the organization in numbers”, it is fundamental to use as a source of information the “business plan”, even before starting the budgeting process...

Cost management system at the enterprise and...

In management accounting, cost management has a crucial role and finds its foundations in understanding “cost behavior”. “Cost behavior analysis” can be defined as “the study of how cost changes when there is a change in an organization’s level of activity”. (Definition https://www.accountingcoach.com/blog/what-is-cost-behavior). Managers need to analyze the behavior of three different types of costs: - Fixed costs; - Variable costs; - Semi-Variable (or mixed)...

A budget and the budgeting process

A “budget” is a “financial plan reflecting the business strategy and represents a more structured way of communicating it to the team”. The process by which a budget is built and agreed within an organization is called “budgeting process” or “budgeting cycle”, that represents one of the most important financial planning tools. “This cycle always starts with a vision or a goal, based on which...

Get Access To The Full Essay
icon
300+
Materials Daily
icon
100,000+ Subjects
2000+ Topics
icon
Free Plagiarism
Checker
icon
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.

Your Answer Is Very Helpful For Us
Thank You A Lot!

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?