The Nature of Production - Introduction
When we use the term 'production' we might normally think of making something. In business and economics, production can mean more than this. A hairdresser, for example, is also involved in production. In this case they would be producing a service as opposed to anything you can touch.
If we take this definition then all business organisations could be said to be involved in some form of production. What we mean by the term therefore is using resources (land, labour and capital) to provide an end user with a good or service.
This image shows workers 'producing' bananas. Once the fruit has grown they need to be harvested, cut into smaller bunches, packed ready for distribution via sea and air. They are then unloaded and sent to markets and distribution centres around the country. Then, they are further processed before finding their way into the shops and supermarkets around the country. Production is not simple! Copyright: Ali Gonzalez
View text and larger version of the mind map.
The mind map above shows the different aspects of production that we will look at.