Four Factors of Production
The four factors of production consist of natural resources, capital, human resources, and entrepreneurship. These factors are constantly evolving with the era business. A successful business uses the four factors in its own personal way. I feel that certain eras, depending on its main need, required a focus in a certain factor of production. I feel that the common theme for requiring evolution in the factors of production is an increase in the demand of technology. As businesses grow, the demand for advanced technology expands.
In today’s tech-driven society, in order for a business to function it requires modern technology.Today, the smallest businesses operate online and marketing and production can be spread over the world through the internet. The five eras of business are the Industrial Revolution, Entrepreneurship Era, Production Era, Marketing Era, and Relationship Era. The Industrial Revolution’s main focus consisted of the construction of major factories. These factories consisted of coal, metal ore, and oil production. The next era, the Entrepreneurship Era, began when factory owners saw the major potential of making major financial gains within their factories. Businesses also began to notice a rise in competition for gains in consumers and sales.
Four Factors of Production Essay Example
The Production Era consisted of factories reaching for mass production of their products. This era focused on quantity rather than quality. Also, the satisfaction of the customer was not the main focus. This began to change in the Marketing Era. The Marketing Era believed in reaching out to the consumers and marketed products with their consumers in mind. They understood that it was the consumers who kept the business running. In today’s relationship era, I feel that there is a major focus on entrepreneurship.
Every company today looks for ways of expanding and merging into other divisions.I feel that when a company has a drive towards entrepreneurship, they are destined to grow. Most businesses today do not solely survive with one key production. Now businesses must offer a variety of produce somewhat like a “one-stop shop. ” With today’s high-tech devices, it is easier and convenient for a person to check their production from home or at their business. Technology has made it easier with placing orders, accepting money transactions, and checking stock than ever before. I believe with the growing technology, it will make it easier to start and operate a successful business.
For example, today an iPhone can now accept credit card transactions. With that device, it makes it a lot easier for business owners to make a sale from almost anywhere. Unfortunately, as our economy stands today, I believe that the next era of business will be controlled by the government. I feel that the government will have more control over businesses and their financial decisions and plans. I do not feel that our economy will succeed with a stronger government control. I also feel that this is against the American values and traditions.