Factors of Production


Each business has its own mix of the four factors of production, vis-à-vis, natural resources, labor, capital, and entrepreneurship.

Natural resources refers to everything useful in its natural state as a productive input including agricultural land, building sites, forests, mineral deposits, and so on. Natural resources are basic resources required in any economic system.

Labor is critically important. It refers to everyone who works for a business, from the company president to the production manager, the sales representative, and the assembly line worker.

Capital is defined as the funds necessary to finance the operation of a business. These funds can be provided in the form of investments, profits, or loans. They are used to build factories, buy raw materials, hire workers, and so on.

Entrepreneurship is the taking of risks to set up and run a business. The entrepreneur is the risk taker in private enterprise system. In some situations the entrepreneur actively manages the business; in others this duty is handed over to a salaried manager.

All four factors of production must receive a financial return if they are to be used in a private enterprise system. These payments are in the form of rent, wages, interest, and profit. The specific factor payment received varies among industries, but all factors of production are required in some degree for all businesses.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Advertisements

Pressure Groups


Big businesses, big labor, and big government are giants on the economic scene. As a pressure group or interest group, each tries to achieve its own objectives. And of course the major objective of a business is to earn profits. Some are more successful than others. To become and stay successful, big businesses employ full time representatives to fight for and protect their interests with government and consumers alike.

Labor is big too. The pressuring power of unions  is evidenced by such accomplishments as minimum wage laws and 40-hour work weeks. Big government now employs large share of all workers in its agencies, departments, and programs. Pressure from government is felt through such actions as taxes, environmental protection laws, and anti-trust legislation.

There is a wide variety of other types of pressure groups such as the media, professional organizations, neighborhood organizations, and dissident stockholder groups. Large and small pressure groups work vigorously to influence business, labor, and government in directions favorable to their own interests.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Communications: Compliance


Compliance results through a power relationship between the participants in the communications process. That is, a receiver complies with persuasive efforts of the source because the source has the power, legitimate or otherwise, to administrator rewards or punishments.

Because the powerful source controls rewards and punishments, he or she can often induce compliance to his or her advocated position. However, compliance is relatively superficial in the sense that a compliant individual does what he or she is forced to do and does not necessarily adopt the complied-to position as a matter of personal desire or preference.

Sales representatives sometimes possesses a degree of power over buyers, especially in a seller’s market where demand exceeds supply and buyers are dependent on their vendors for supplies of raw materials, parts, or merchandise. Purchasing personnel may feel that if they do not comply with a sales representative’s requests, their orders may be delayed or cut off completely.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Collective Bargaining


Collective bargaining is the process by which representatives of labor and management negotiate an agreement governing pay scales and terms of work. The negotiations leading to a labor contract are often time consuming, difficult, and heated. A contract between a large union and an industry is of considerable economic consequence, involving thousands of workers and billions of dollars in wages.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Attitude and Customer Liaison


Attitude is not always easy to understand, train or instill. It is generally defined as a positive, enthusiastic and helpful attitude – somebody that seems more alive and dead, it means somebody who seems to enjoy what they do or enjoys dealing with customers, not just somebody who happens to do this as a job to earn a living. Even though this may be true, a good customer service experience is one where the customer service person pretends if nothing else, that they enjoy their job – they like doing what they do and they are pleased to see the customer. If the customer representative can do this, the customer will pretend to enjoy buying from them and pretend enough that they will probably come back.

One of the most important aspects of attitude is when the customer is dissatisfied. The customer will then seem to view life through a telephoto lens and every detail or every aspect of the interaction will come under scrutiny. Therefore, the attitude must be to look at a glass of water as half full, instead of half empty.

One of the most important and outward expression of attitude is the verbal and non-verbal behavior that people use at critical times. Simple expressions, such as: ‘I can do that’ or ‘There’s nothing I can do’ or ‘That’s our company policy’ or ‘I only work here’ or ‘You’ve come through to wrong extension,’ only frustrate the customer. Some of these factors, of course, may not be because of anything the person can do; however, it is their attitude that will often create more of an annoyance with the customer than the policy itself. A simple solution to this is that whenever somebody has to be told they can’t do something, within the same sentence they have to know what they can do or may do.

The attitude that will work, if you can instill it, is that every single customer is your most important customer. Instead of seeing a customer for the transaction value that they spend at that time or for the nature of their enquiry, see the customer as a million dollar customer, somebody who has access to large revenue, either through their direct spending or indirectly through referrals and repeat business.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Limited Warranty


A limited warranty is that does not meet the standards for a full warranty. For example, a limited warranty may cover only parts, not labor, or may require the purchase to return a heavy product to the seller or service representative for service. It may also require the purchaser to pay for handling or allow only a pro rata refund or credit, depending on the length of time since the product was purchased. Often, a limited warranty protects only the first purchaser.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Previous Older Entries