CAPITAL VS LABOUR INTENSIVE

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  • Created by: _Holly98
  • Created on: 19-01-16 14:08

CAPITAL & LABOUR INTENSIVE

CAPITAL - METHODS PRODUCTION USE HIGH LEVEL CAPITAL EQUIPMENT COMPARISON OTHER INPUTS

LABOUR - METHOD PRODUCTION USE HIGH LEVEL LABOUR COMPARISON CAPITAL 

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CAPITAL INTENSIVE EVALUATION

HIGHER VOLUME OUTPUT FASTER

CONSISTENCY (STANDARD QUALITY) 

ONCE WORKING LOWER UNIT COSTS - LOW PRICE

LOSS OF JOBS

CAPITAL REQUIREMENT HIGH

TEETHING PROBLEMS (TECHNOLOY FAIL WORK)

REPUTATION (ETHICAL ISSUE - BETTER EMPLOY STAFF)

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LABOUR INTENSIVE

JOBS

FEEDBACK

HAND MADE - CHARGE MORE

HIGHER QUALITY

HIGH UNIT COST

LACK VARIETY / LABOUR TURN OVER / ABSENT STAFF

QUALITY NOT CONSISTENT

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FACTORS INFLUENCE CHOICE CAPITAL & LABOUR

METHOD PRODUCTION

SKILLS & EFFICENCY FACTORS PRODUCTION

RELATIVE COSTS OF LABOUR

SIZE & FINANCE POSITION OF BUSINESS

THE CUSTOMER

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