Business Environment

Task 1
The definition of resources often refers to people, assets, material or capital which can be used to accomplish a goal.   In economic theory, resources is an equivalent terms for Factors of Production.   In another words, Factor of Productions are points to be consider in order to achieve the expansion of a business.

Factors of Production is composed of 4 essential elements, these are land, labour, capital and enterprise.

Land
Often refers to the physical location and other nature resources available for production.   In Prolizka Kitchen Solution scenario, physical location refers to where the factory is situated.   As you can see, there are cost involves in transporting, exporting and importing.   One possible solution to reduce these costs (as part of long term investment) is open up a new factory in UK to meet the demands in UK.

The nature resources refer to the raw materials used to produce the Kitchens.   Without raw material, there will not be a final product.   In Prolizka, the management is considering utilize other resources in the production and design process.   did not mention there is any resource constraint Prolizka is currently encountering but just to bear in mind physical location does have effect on the cost of obtaining these resources.

Labour
Labour refers to the physical and mental effort of the employees.   While some consider labour as a raw material used in the production process, other regards labour as part of conversion process (convert raw material into the final product).   Regardless of which, the important elements within labours are availability, quality and price.

In Prolizka Kitchen, it was stated there’s a shortage in the skilled labour in Porland. First thing to be considered is: are there enough labour to meet the demands for new order.   Second factor to be considered is: skill shortage will often refer to high labour cost.   High labour cost is equivalent to less profit.

Capital
Capital is composed of two...