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Combining factors of production to achieve growth objectives

Combining factors of production to achieve growth objectives. LEARNING OUTCOMES FOR THIS LESSON. Identify the four Factors of Production and their importance Understand the nature of enterprise, and its central role in producing goods and services efficiently. INTRODUCTION.

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Combining factors of production to achieve growth objectives

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  1. Combining factors of production to achieve growth objectives

  2. LEARNING OUTCOMES FOR THIS LESSON • Identify the four Factors of Production and their importance • Understand the nature of enterprise, and its central role in producing goods and services efficiently.

  3. INTRODUCTION • Land Securities is a property business. • It has been the UK market leader for over 60 years. • Its income comes from property management and rents. • The factors are the four basic inputs needed for any business. • They are land, labour, capital and enterprise.

  4. LAND • The amount of land people can use is fixed. It is therefore in short supply. • Land Securities manages land by using the buildings on it. • Firm does not build itself. It hires builders then manages the buildings. • It accepts that it has a duty to look after the environment. For instance, it used rubble from old buildings for the base for Heathrow's new Terminal 5.

  5. LABOUR • Labour refers to all work done, whether by hand or brain. • Land Securities employs 2000 people. It has a system of staff rewards. • asks staff to share ideas and rewards them for the best ones. It runs a 'Values into Action' award. This rewards staff for demonstrating the core values of the firm. • These include being honest and giving good customer service. • Land Securities complies with all labour laws.

  6. CAPITAL • This refers to the buildings, machines, tools and equipment used to create products. • Land Securities manages over £8b worth of assets. • It has three main divisions: • Central London. It manages 810,000 square metres of office space. • Retail. It has 18 shopping centres and 25 retail parks. • Property. It manages property on behalf of clients. It takes on day-to-day tasks such as caretaking, cleaning and security.

  7. ENTERPRISE • This refers to the organising skills needed to make a product. It involves taking risks and trying new ideas. • Land Securities reduces its risk by making sure it has a balance of high and low risk projects. • It has worked out a way to manage the risks. This involves first seeing what the risks are. Risks are then assessed and action plans made to deal with them.

  8. CONCLUSION • Land Securities' aim is to create good returns. • This relies on careful management of all four factors. Land, labour and capital are important. • Enterprise is the key factor.

  9. ASSESSMENT OF LEARNING OUTCOMES • How well can you identify the four Factors of Production and their importance? • How well do you understand the nature of enterprise, and its central role in producing goods and services efficiently?

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