3.1 - Planning in The Internal Environment

Question 1

Inputs

Answer 1

Inputs are three key things that a business will use to produce its particular good or service

• Labour
• Natural Materials
• Capital

Question 2

Labour

Answer 2

These are the people that undertake tasks for the organisation so that is able to produce its good or service. A business would need to plan the number it needs, the skills they are expected to have and what training may be required.

Question 3

Natural (Raw) Materials

Answer 3

These are the inputs that are altered to make the final product or service. For a baker, it would be the flour, eggs, milk and electricity. These items are consumed. A business needs to plan the amount they need, when they need them and what they need.

Question 4

Capital

Answer 4

This is the equipment that is needed to make the product or service. For a baker it would be the mixer to put the ingredients together and the oven to bake it.