Production Flashcards
What is production
Production is the process of using materials(inputs) and transforming them in some way to produce goods and services
What is a need
Needs are things that are essential to human survival
What are the factors of production
The resources needed by businesses to produce goods and services
Land, labor, capital and enterprise
What is land
Land as a factor of production in idea geographical surface area, rivers,lakes and seas, minerals and chemicals
What is Labour
Labour is peoples physical and mental contribution to the creation of goods and services
Types of Labour
Semi-Skilled/Unskilled: cleaners street vendors ,drivers watchmen (little to no special training)
Skilled: Engineers mechanics, electricians,plumbers
Managerial/professional: teachers,doctors,nurses,lawyers
What is Capital
Capital as a factor if production is the money that is invested in a business in order to acquire the assets which the business needs to produce or trade
Venture Capital
Venture Capital refers to money subscribed to finance new businesses and activities of an existing business that are considered to be of a risky nature and therefore not usually finances through traditional methods
Enterprise
Enterprise as a factor of production refers to special skills known as entrepreneurship that some people have to organize their business
Inputs
What a business puts into its production process
Outcome
The level of performance or achievement the business has gained as a result of its activities; the output achieved per unit input
Productivity
A measure of the increase in output from each unit in the production process
Quality Control
Checking the quality of items produced against a standard measure of quality
What are the types of Production?
Primary, Secondary, Tertiary
Primary Profuction
Concerns the extraction of basic raw materials provided by nature
Eg,
Agriculture: involves food production IJ the form of fruits and vegetables etc
Fishing: plays a major part in providing food for countries that have access to the sea
Mining: involves the extraction of raw materials such as fossil fuels,oil,gas etc
Secondary Production
Consists of The manufacturing and construction industry is. They take the materials produced by the extractive industries and change them into the end product.
Eg,
Manufacturers may be involved in the production of the complete item with the mimic pause that will be assembled in a finished article
Construction industries take the role or partly process with you as a primary producers and change into buildings roads bridges etc.
Tertiary Production
They enable the change of ownership of goods and services tertiary activities begin with the kids leave the producer and I transported and stored by the traders
What is commerce
Commerce consists Of transporting warehousing advertising banking insurance and communication
Subsistence level of production
This level of production meets only basic needs of the country in which it takes place it enables the population to survive but not enough to improve the way of life they tend to be reliant being in agriculture and people live entirely and what can be a team from natural sources and this results in a very poor quality of life periods of drought or other climactic problems result in severe hardship
Domestic level of production
At the domestic level of production everything is produce locally that is within the home country both human and natural resources are employed and the whole country is dependent on what can produce from these resources
Surplus level of production
Developed countries have a wide variety of resources and expertise to the full they also have advanced technology which enables them to take full advantage of their resources countries like these satisfy to Mesa consumption but also provide a surplus that can be exposed to other country this results in a better quality of life for the population because there’s an access to water for active products presses a more competitive and more can be earned from production
Cottage industries
Because this industry is one of the smallest types of business it is operated in the home and involves mainly manual handiwork and is carried out at home this is often used to supplement a person’s is normal earnings
Example room string aunts flower arrangements comments embroidery basketry jams and jellies, beauty culture smocking
Functions of the small business
1: providing rural areas with nearby shopping facilities especially in under developed annual areas
2: supplying goods and services that satisfy some demand
3: so filling in niche in the market that does not interest larger businesses for example wedding planning and beauty services
Advantages of a small business
1) good working relationship some more easily established and maintain
2: it is easier to promote more personal contact between employees and customer this leads to a glutamyl personal seagulls service
3: they provide employment opportunities particularly in rule and depressed areas
4: closer communication exist between the owner and the employees and between the employees themselves
Disadvantages a small business
1) starting up the business exposes the owner to have personal and financial risk
2) once establish income can remain highly variable
3) they tend to have small batches and do not have the funds to pull into research or development of technology
4) they find it more difficult than larger organizations to sauce outside finance for example loans
Value of small businesses to a country
1) collectively small businesses provide employment and that utilize the local leave them available on reduce unemployment
2) in some situations small businesses are the only week that some needs are met example garden services I’m not the type of activity since it’s a large businesses
3) small business can respond to customers needs faster than larger businesses
4) small businesses contribute to the competitive spirit of the economic life of a country back competing with larger organizations that’s preventing them from having a monopolistic position
Why do business is expand
1) they are successful and extension is necessary to meet the demand for the product
2) they wish to make a greater level of profit three they’re trying to gain economies of scale
3)
They wish to reduce competition and become market leaders
4) expansion will only take place if the business can benefit and make extra profits
Internal Growth
Internal growth occurs when the firm expands to the use of it’s own resources such as retaining some of its profits and using them to invest in furtherexpansion
What does internal growth require?
Internal growth requires
1) working existing plant and machinery at optimum performance, pushing it towards full capacity
2)
Investing in further cost saving technology
3) extending existing physical capacity or moving to a new and bigger site
4)Increasing the workforce unemployment because with technical skills
What is external growth
External growth generally occurs when one form takes over or merges with another
What is a joint venture
A joint venture involves two or more businesses pooling their resources and expertise to Achieve a particular goal
What is a Merger
A merger is the voluntary combining together of two or more businesses into a single business that is mutually agreed by the firms management and agreed by the shareholders
What is an acquisition or take over
And acquisition or take over refers to a business strategy whereby the control of a business is taking over back another business by purchasing at least 51% of its voting shares
Types of messages
Horizontal integration vertical integration Vertical forwards Vertical backwards conglomerate merger
What is horizontal integration
Horizontal integration occurs with a firm merges with another of another firm at the same stage of production this can also have the effect of reducing competition
What is vertical integration
Vertical integration occurs when one firm merges or takes over another one at a different stage of production vertical integration can be forwards or backwards
Physical forwards integration takes place when a firm integrates with another business that is at a later stage of production that is closer to the consumer whereas vertical backwards integration takes place when a company moves backwards down the chain of production that is closer to the raw material supply
What is a conglomerate Mucho
Also known as the lateral merger is the integration or takeover of two or more companies engaged in unrelated business which then become one corporate structure usually involving a parent company and possibly several subsidiaries
What is a linkage industry
The linkage industry is one that is linked with another one industry produces something that the other needs
Advantages of linkage industries
1) provide increased employment and an improved standard of living
2) assist regional self-sufficiency
3) reduce wastage of the countries resources for increased opportunities
4) combined research and development
What is business growth
Business growth refers to an increase in size and profitability over a period of time
What is organizational structure
Organizational structure reflects the which a by which a business organizes communication distribution and responsibilities and adapts to change
