Unit 2 Key Questions Lesson 66.a. Natural resources: oranges, energy, and water (assuming it is needed to make the juice)Raw materials: ingredients-sugar, orange flavoring, water, orangesEquipment- juicers, filters, orange processing machinesSupplies-cartons (for packaging the juice)Goods for resale: there is a possibility of adding additional juices like grapefruit juice to expand the juice line in the companyLabor: There is one human worker required to physically work in the juice making process. The rest are automated machines.Capital: They have capital goods and money with the help of the machinery and uses it for buying equipment and the ingredients needed (inventory of lemons, sugar, and orange flavoring). They also planto use their capital/profit to expand their juice company.Information: The Happy Morning Orange Juice Company needs to know their competition, the costs of their supplies and where better prices are, the recipe or process of making the juice, and better technological equipment that can further benefit their company. They also need to know about how wella new grapefruit juice will do in their business. Management: It is most likely that there is a manager who makes the decisions, determines the staffing, material, and equipment needs, and other information relevant to the company. b. purchasing: the juice company needs to buy large amounts of oranges, sugar, and flavoring to make the juice. Since they buy their oranges from one orange farm, they can negotiate on better prices. The other supplier for sugar and orange flavoring can be negotiated for lower prices as well or they can look for better supplies of these ingredients elsewhere. Grading: the orange juice company graded their quality standard of their oranges using the US Fancy standards, which the Stevens and Sons Citrus Farm met. As a result, the company buys their oranges from there, and only there. It is evident that they graded their other ingredients (sugar and flavoring) thesame way (white sugar or brown sugar)Processing: They process and juice the oranges with the help of the machinery there and add the other ingredients into it to create their orange juice. They would then package them into containers to be transported to stores.
Quality control: the company would have some sort of quality-control system installed to ensure that thejuice has the required taste, purity, etc. mandated by the law and government standards. c. Happy Morning Orange Juice Company:To increase productivity for the juice company, they made capital investments that would allow them to produce more juice with new automated machinery. With the machine equipment replacing human labor, productivity is greatly increased and more effective.
You've reached the end of your free preview.
Want to read all 7 pages?