Sweet Success : The Role of Labour & Capital in Chocolate Production and The Benefits of Specialisation

 

State and explain two factors of production needed for the manufacture of chocolate. Explain the benefits of specialisation in the manufacture of chocolates. [8]

Factors of production are resources (inputs) used in the production of goods and services. There are four factors of production. They are land, labour, capital and enterprise. 

Labour and capital are needed to manufacture chocolates. Labour helps in facilitating the production, packaging, marketing and distributing the finished product. In addition, skilled workers are needed to operate the specialised machinery used in the production process. Thus laborers must be trained to operate them efficiently. 

Capital is also an essential factor in chocolate production, as manufacturers require a range of machinery and equipment to produce high-quality chocolate at scale. Additionally, packaging equipment such as wrapping machines and automated conveyor systems are needed to package and transport the finished products. These machines require significant investment, but they can increase efficiency and productivity, reduce labor costs, and improve product consistency and quality.

Specialisation is when workers focus on specific parts of the production process that they are best at or have been trained for. This results in a division of labour which is when the production process is broken down into smaller tasks, each done by specialised workers thus increasing productivity. For example, in a chocolate production, specialisation can take place when the employees are concentrating only on one part of the process such as mixing, moulding, packaging and storing the chocolates.It increases efficiency and productivity, leading to lower average costs and increased profitability for chocolate manufacturers. This also results in a faster production process and higher output of chocolates.

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