how the factors of production


  1. Analyze how the factors of production (labour, capital, entrepreneurs, natural resources, and information resources) work together for a product or service of your choice.
    • Page 5
    • Labour – The people who work for the company
    • Capital – funds needed to start business or keep business going eg sale of stock, personal investment, profits from sale of product
    • Entrepreneurs – People who accept opportunities and Risks involved in creating and operating businesses
    • Natural Resources – Physical resources such as Land, Water, Mineral deposits
    • Information – specialized knowledge and expertise of people who work in the business
  1. What are the benefits and risks of outsourcing? What, if anything, should be done about the problem of Canadian companies outsourcing jobs to foreign countries? Defend your answer.
  • don’t mention just one benefit or risk
  • at least 3 is recommended
  • stay away from “I think that…”
  • stay away from opinions.
  • Page 36
    • Outsourcing is strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or services. For example a cafeteria in a Museum.
    • Benefits of Outsourcing:
      • Company can focus on its main goal
      • outsourcing certain things or services to other countries can save companies lots of money and allow it to be more competitive.
      • outsourcing training, outsourcing IT services
    • Risks: Increased reliance on suppliers/distributors, language/international barriers, ????
  1. Identify some social responsibility issues that might be faced by small business managers and employees in each of the following areas: environment, customers, employees, and investors.
    • list items for managers and employees for all four areas
  1. Why might a private corporation choose to remain private? Why might it choose to “go public”?
    • again, looking for multiple reasons for each.
    • you can list pros and also list cons then ultimately conclude why or why not they might remain private or go public.
    • definitely 2 at minimum but 3 items recommended
  1. What are the advantages and disadvantages of globalization from a Canadian consumer’s point of view? From a Canadian manufacturer’s point of view?
    • again, minimum of 3
    • Page 99
  1. Consider the various corporate level strategies discussed (concentration, growth, integration, diversification, investment, reduction). What is the relationship between these various strategies? Are they mutually exclusive? Complementary? Explain.
    • Page 136-137
  1. Why do some managers have difficulties in delegating authority? Why do you think this problem might be more pronounced in small businesses?
    • Page 154
  1. Why do you think the unionization rate in the public sector is so much higher than in the private sector? Do you think this will change in the foreseeable future? Explain your reasoning.
    • Page 185-191
  1. Explain how each of the “big five” personality traits influence leadership effectiveness.
    • obviously you have to list all five then explain each one and how they influence leadership effectiveness
    • Page 201-202
  1. Agreeableness – a person’s ability to get along with others. Highly agreeable people are better at developing good working relationships with co-workers, whereas less agreeable people are not likely to have particularly good working relationships.
  2. Conscientiousness – refers to the number of things a person tries to accomplish. Highly conscientious people tend to be relatively higher performers in a variety of different jobs.
  3. Emotionality – refers to the degree to which people tend to be positive or negative in their outlook and behaviours toward others. People with positive emotionality are better able to handle job stress, pressure, and tension. The stability might also cause them to be seen as more reliable than their less stable counterparts.
  4. Extraversion – refers to a person’s comfort level with relationships. Extroverts tend to be higher overall job performers than introverts and are more likely to be attracted to jobs based on personal relationships, such as sales and marketing positions.
  5. Openness – reflects how open or rigid a person is in terms of his or her beliefs. People with more openness are often better performers due to their flexibility and the likelihood that they will be better accepted by others in the organization.
  1. Pick three services (not physical products) that you regularly use. Explain what customization, unstorability, and intangibility mean for each of these services. How do these factors influence the way the service is delivered to the customers?
    • You can use a table format, etc. as long as you explain all nine items
    • 3 services x customization, unstorability, and intangibility
    • Pages 232-234 (three key features of service operations)
  • Customization – although companies produce in large volumes, each unit features the unique options the customer prefers. Customers are often present in the operation process.
  • Intangibility – an important satisfier for customers i.e. in the form of pleasure, gratification, or a feeling of safety.
  • Unstorability – can’t be produced ahead of time and then stored for high-demand periods. If a service isn’t used when available, it is usually wasted.
  • Some examples of services: haircut, carwash, legal assistance, transportation, child care, house cleaning, air travel, travel agency (expedia).

Customization Unstorability Intangibility
Massage Therapy

Doctor Appointment


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