MACDONALNDS

PRODUCTION EXPLAINED
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The factors of production can be

broken down into four parts; Land,
labor, capitaland entrepreneurship

FACTORS OF PRODUCTION
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LAND
Land essentially questions what natural
resources, what raw materials, are
businesses’ using in order to produce the
product

CONNECTION TO BUSINESS
Meat products, agriculture (Both veg and
grains), dairy products as well as trees which
are used to package the product (Think
about the paper surrounding a burger)
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LABOR CONNECTION TO BUSINESS

Asks about the physical/mental exertion used within Farmers who produce the food, delivery workers who bring
the production process. the product to Macdonalds and finally food prepares who
package the food, e.g. the patties, for Macdonalds

CAPITAL
This askes what materials, man-made
materials to be specific, are used in the
production process

CONNECTION TO BUSINESS
Combine harvesters are used to harvest products such
as grains whereas vegetables are hand picked,
moreover, delivery trucks are used to transport
product to business’
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PURCHASING

STEPS IN THE The owner purchases the raw materials, e.g.

Wheat. When doing so, factors such as the quality

PRODUCTION PROCESS and price of the product are considered, e.g. Does
the price mirror the quality?

PROCESSING
Processing is where the raw material is
turned into a product that can be actually
used, e.g. Wheat - Flour - Bread
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STEPS IN THE
PRODUCTION PROCESS
CONTINUED

QUALITY CONTROL GRADING

Quality control is looked at to Grading is based on the standard
ensure they meet standards set and is used to compare them to the
by both the government and the product. The closer the product is to
FDA. the standard, the higher the grading.
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FRIENDLY MANAGEMENT STYLE
FOUR WAYS TO IMPROVE Creating a harsh and unwelcoming environment not only deters

PRODUCTIVITY
customers but also employees. Many in this situation would begin
to slack off and or would hide problems from management due to
the fear of being fired. Instead, by implementing a kind and
welcoming attitude, employees will feel happy when they come to
work and will thus boost morale which in turn increases
productivity.
ENSURING GOOD QUALITY TRAINING
When purchasing product,
By using good and accurate
owners must make sure that
training videos supports
they buy only the best of quality
employees and helps them
as it will lessen the chances of
to achieve more in a faster,
having defects. These defects
more understandable yet
TECHNOLOGY
can delay work and reduce
cheap way.
profit, thus it is important to Providing state of the art and or just up to date technology can
purchase high quality products. help employees to better track the profit made and would
eliminate or at the very least decrease human-made errors. Often
cashiers make totaling mistakes, thus by having technology take
care of that process for them, one would get rid of any outside
factors errors and only provide the most accurate information.
Moreover, technology helps to manage and track how much
product a business has and can even order more stock when it
realizes that it is low. This essentially allows for business owners
to leave the JIT management over to technology, letting them
have more time to focus on more important things.
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