Production factors – Definition, type, and stage in the business world
In the business world, you should be familiar with this term: production factor. Because, every process that must be done in business, definitely use these factors.
However, it turns out that not all business people understand about utilizing these factors. So, below are articles on understanding, objectives, and types of production factors, especially business development. Here’s a full article.
Definition of production factors
Production factors are a process that has the benefit of creating selling and use value for products or services. So, it is almost certain that whatever products are involved in the production process, are part of the production.
For example like this. Just imagine the product is a motorcycle. The vehicle certainly won’t have a selling value and use, if there is no seat, wheel, and mirror. Also, it won’t be selling and use if it’s not done by humans (labor). Well, starting from seats, wheels, to humans is part of the production factor.
If it is a general understanding, how special understanding? The production factor is all the power needed by the producer to be comfortable and safe in each process. So, these factors are the sustainability process. If one above is not present, the production process will not be completed.
If this happens, production is jammed. There will be no product created. So, it will inhibit the progress of your business. You will be omitted by competitors.
Production factor objectives
When you build a business, you need to determine business goals. Likewise with the production factor. Some things need to be achieved so that the production process is easier.
1. launch the production of goods or services
The most important thing you have to make sure of is the smooth running of the product. All facilities are available. You have done some processes. Starting from marketing, capital, organizational management, and so on. Therefore, the production factor must be complete and detailed. If incomplete, the production process will not be easily achieved.
2. Provide profit
What is the most important of the purpose of production factors? Of course, it generates profits for companies. This can be achieved if these factors are complete and detailed. There is no shortage. When you do even product marketing, the results will be in line with expectations. Easy products are sold and it improves your business performance.
3. Satisfied customers
When the two objectives of the above factors are achieved, it produces the third goal: customers are satisfied. Because customer satisfaction is an important factor for your business. If they are happy, they will not hesitate to share stories or recommendations with other customers.
So, so that customers are satisfied with your product, there are times when the product is following their wishes. This is important because it means you are close to customers. In addition, it can understand what is a customer’s will.
Types of production factors
After you understand how the purpose of the production factor, you need to also know what kind of production factor.
1. Natural resources (SDA)
SDA is one of the important parts of the production factor. Many products whose materials come from nature. For example, there are shoe products or leather bags. So, the ingredients come from animal skin. Not only that, but some products need to use air or water. Because, without natural resources, the production process will not run smoothly.
2. Human Resources (HR)
HR is also an important part of the production factor. Try to see how many companies still need humans in the production process. For example, cigarette categories kretek hand. Well, the hands of women are the advantages of the product. Without humans, production can’t run by itself.
Capital is the key to production factors. Both with small capital and large capital, the production process always requires capital. From the capital, you can use it to finance production costs. In addition, also to pay employee salaries and buy materials.
4. Information resources
The flow of information that is increasingly heavy makes business people rushed. Because now it’s no longer offline but online. Anyone who can follow the current currents, it can be ascertained that the business development is getting better.
That is the meaning, purpose, and type of production factor you need to know. When you have understood the importance of production factors, you are ready to run a business. For your business to grow and increase the number of customers you don’t forget to advertise through the Froggy Ads service, you can start by advertising your product, so that later you can improve visitors in your online business portal. FROGGY ADS is an online advertising service that can help you control all your product campaigns. Helps you target the targeting target you want and give you many choices to market your product.