Capital intensive VS Labour Intensive

Pros:

• Increased productivity- Output per worker
• Improved quality and speed 
• Reduced labour costs 
• Greater oppurtunities for economies of scale (benefits of producing on a larger scale)
• Elastic market- Reduce selling price and inelastic will increase profit margins 

Cons:

• High investment outlay
• Affordability
• Lack of human initative
• Greater resistance to change by workforce such as retraining which could lead to strikes and people could become redundant.

Pros:

• Often cheaper (especially low wage locations)
• Workforce can easily adapt to change (especially if they are highly skilled)
• Continuous improvement through workforce can benefit the business such as Kaizen
• Government funding often available to protect jobs in the economy

Cons:

• Industrial relations can be a problem such as strikes or a nasty reaction to something
• Lack of skilled workers in some industries 
• HRM costs can be high such as recruitment and training