Transcript Producer decisions - Resources

Producer decisions
- Resources
Resource Decisions 1.
Natural Resources
– any thing which occurs naturally
– E.g. Cocoa Beans , Milk
Capital Resources
– Man made goods that are used in the production of
other goods and services
– E.g. Jafa Spinning Machine
Human Resources
– people who contribute to the production process.
– E.g. workers who sort the roses
Sustainable Practices
• Impact on Producer
– By using fair trade increase costs of producing the
chocolate
– May increase sales as more customers will purchase
the chocolate knowing that its fair trade
– May have increased advertising costs to advertise to
consumers that they are using fair trade
• Impact on Society
– Consumers feel good as they are helping the
environment and producers in developing countries
– Environmental impact is positive as more coco beans
will be available for future generations
Use of Local Producers
• Impact in Producer
– Use fresh milk in chocolate process
– Cheaper transport cost by using local farmers
– Supporting the local community so consumers may stay
more loyal
– May have higher costs
• Impact on Society
– Increase the revenue for local farmers
– Provide local jobs, which will mean households incomes
will rise
– Consumers feel good buying products that support the
community
The number of employees
• Impact in Producer
– Increase labour costs if they decide to higher another employee
could lead to decreased profits
– Could mean increased division of labour can occur which could
increase productivity
– May need to pay for training of the worker
– Become more labour intensive. This could lead to division of
labour, which may mean increases in productivity then leads to
increases in sales and revenue for producer
• Impact on Society
– Employment opportunities for community
– Better service to customers
– Increased skill level of workers in community
Purchase of Additional Machine
• Impact in Producer
– Increase productivity
– Become more capital Intensive
– Cost of purchasing the capital
– May need to train workers to use new machine
• Impact on Society
– Negative impact on health, more chocolate being
consumed
– More chocolate available
Section Two
Question 3
• Productivity measures the output per unit of
input
Question 4
• Productivity =
50000
20
= 2500 roses per worker
Question 5 Achieved Answer
• Productivity is important as it reduces costs of
production allowing Cadbury’s to make higher
profits
• AND/OR
• Productivity can be improved through division of
labour which is when a specialist task is broken
into smaller tasks and done by different workers.
Question 5 Merit Answer
• Productivity is important because if productivity has
increased it means the costs of producing the good has
decreased. This will then allow Cadbury’s to sell their
product at a lower price to consumers.
• A lower price would make Cadbuy’s more competitive
so consumers will then increase their demand for the
product as its now cheaper and will purchase more.
• This increases the sales and revenue of Cadbury’s
leading to increased profits
Question 5 Merit Answer
• Productivity can be improved through Division of
Labour when specialist task is broken into
smaller tasks and done by different workers.
• Workers in Cadbury’s could work in a production
line, where one worker would do one task of
production each. If the same worker is doing the
same task over and over again, the worker can
become more faster at doing that job. This means
output would increase using the same number of
workers therefore productivity will increase.
Question 5 Excellence Answer
• Productivity is important because if productivity has
increased it means the costs of producing the good has
decreased. This will then allow Cadbury’s to sell their
product at a lower price to consumers. The workers sorting
the roses would be able to sort more than 50 000 roses a
week.
• The lower price would make Cadbuy’s more competitive so
consumers will then increase their demand for the product
as its now cheaper and will purchase more.
• This increases the sales and revenue of Cadbury’s leading
to increased profits
Question 5 Excellence Answer
• Productivity can be improved through Division of Labour when specialist
task is broken into smaller tasks and done by different workers.
• Workers in Cadbury’s could work in a production line, where one worker
would do one task of production each. If the same worker is doing the
same task over and over again, the worker can become more faster at
doing that job. This means output would increase using the same number
of workers therefore productivity will increase.
Cadbury’s would make more chocolate in a day than in the past
A consequence to improved productivity will be that consumers of
Cadbury’s chocolate would enjoy lower prices, customers may get a better
service at Cadbury’s. Lower prices to consumers may mean that consumers
have more income left over to purchase other goods and services or may
consume more chocolate.
• If workers become more efficient they may be able to command higher
wages from Cadbury’s. They are also more likely going to have a secure
job as Cadbury's is likely to continue to operate if they are continuing to
be profitable.