Production and pricing aspects
- 2. THE CONCEPT OF PRODUCTION Production in contemporary times really refers to creation of products or services and conversion of transformation of resources into a finished physical product (goods) or services needed by the market or consumers.
- 3. For entrepreneur, mind-setting is important in going into a self- owned business. This mind-setting stage means that, among others, one has to realize weather the entrepreneur has to take the route via hardware production as in the context of what technical production/manufacturing where output is physical products or goods.
- 4. The entrepreneur may have to take the route via creation services.
- 5. Production or creating services is a very challenging option for entrepreneur as this is where an innovative and creative mind is really tested to be limits.
- 7. WHAT PRODUCT TO PRODUCE For market- oriented entrepreneur, the question of what to produce or manufacture boils down to the question of what to sell.
- 8. What product to produce of what service to render to meet the needs of the market is by itself the bias of the entrepreneur? Even before ascertaining in writing or doing the business plan (if needed this has to be done)
- 9. A prospective entrepreneur really has in mind the kind of product or service to be handled.
- 11. This option is a bit expensive route for the entrepreneur simply because the need to budget funds for the procurement of capital items and other infrastructure need for a production or manufacturing-based business concern.
- 12. Each production processes demands a detailed study both from technical, economic and financial aspects as well.
- 13. In the business plan, specific study and analysis of every minor detailed of the production processes have to be carefully made as this is where cost minimization aspects can be addressed.
- 14. By using the appropriate production technology, the entrepreneur should be able to hire the appropriate personnel well qualified and motivated to operate the machines and deliver the right quality of product.
- 15. Source of skill Production 0Books 0Literatures 0Documents of producing or manufacture
- 16. Equipment’s and machinery suppliers for any production generally provide manuals.
- 17. ` NEW PRODUCT COMPANY EQUIPMENTS MACHINERY MONEYRAW MATERIALS MANPOWER WORKING IN PROGRESS … LAND
- 19. The entrepreneur avoids the cost of burden of buying machineries and equipment as this is the concern of sub- contractor.
- 20. All materials and supplies are provided for by the main producer/exporter to ensure product quality.
- 21. Sub-contractors are subject to strict quality control measures with subcontractors threatened with penalties and sanctions when turning in underquality finished products.