WESLEY KISI EXERCISE 1

1. The transformation process of a business. (4)

INPUTS OUTPUTS

Finished
Resources
goods
Land
Production process Services
Capital
Component
Labour
s
Enterprenue
rship

It can be concluded as adding value to the goods invested by the firm into the business so that the produce or
output can be sold at profit .

2.)

a.) Effectiveness it is the ability to which an organization has achieved its objective and how actual ouput
is different from the planned output .

b. ) Efficiency is the measure of how inputs have been utilized relative to how inputs have been planned
to be used ,measuring the difference between actual input used and planned input .

3. Two factors that influence a firm whether to be capital or labour intensive are :

I .) Finance resources

II.) Nature of product and profits predictions

4. Two advantages of a firm being capital intensive are

I.) High productivity and low unit cost : the firm will be able to produce more goods per output and also
reduce costs

II.) Economies of scale : increasing output due to more capital firm will benefit more profits or benefits .

5. Productivity :this can be referred to as output per each unit of resource used,it measures output
produced per each unit input. For example if we have invest 200 dollars into forex trading and get out
profit of 1000 dollars the product would be 5 as output per each dollar (4)

6. Three factors to be considered in operations planning

I.)Efficiency : this can be concluded as minimizing and keeping costs low as possible
II.)Flexibility : the ability , power and need to adapt to new activity processes and new goods or products
in the today environment.

III.) Quality : goods or services must be suitables and satisfying for their purpose .

7.) Innovation is is the process of inventing,and ability to bring about ideas and create niche market
which will be different from other competitors and attract customers thus increasing revenue or sales .