Along with Religious morals and Government regulations, Business activity is one of the corner stones of a great society, delivering essential goods and services directly or indirectly to consumers, creating and sustaining the desired economic activities that fuels growth and improving upon the existing standard of life. Business cannot achieve its core objective, provide jobs or offer a reasonable return on investment without being mindful of the actual and attainable levels of efficiency.Efficiency; the ability to get things done without waste of energy or time, using processes to generate solutions, paying fairly for and encouraging productivity and innovation, making the best out of the least, none of which can be measured using a balance sheet or budget.
The efficiency of Natural Resources is measured by the quantities extracted or grown over time. How much oil, coal, or gold is mined per shift and at what rate are new discoveries of viable deposits being made? How many heads of cattle, chickens or bushels of corn are harvested daily and at what rate are stocks being replaced? The efficiencies associated with mining and agriculture is extremely sensitive mainly due to the replacement factors and additionally due to unpredictable weather conditions. Many materials extracted from the earth, including plants’ nutrients, cannot be put back in a reasonable time period, making such activity high risk. So, to increase efficiency some have combined the same natural resources to make machines that have streamlined the mining and agricultural processes and made synthetic versions of some raw materials which help to reduce demand for the resource from the earth.
Human Resources efficiency is measured in terms of productive activities and innovative ideas. Hence, if one person can successfully prepare, plant and harvest five acres of land to yield ten tons per day of any particular food item which can help feed ten thousand people, does not necessarily mean that in a population of ten million, only one hundred farmers and five hundred acres under cultivation are required. Production output losses increase, the greater the size of inputs for various reasons. These problems require innovative solutions, mostly from the said farmers bringing their experiences to bear, which will increase yields and reduce wastage.
Utilizing processes and skilled workers to refine, reshape or redesign natural resources into raw materials and to further assemble, fashion or combine raw materials into finish products is generally referred to as Production. Moving products to places where users and consumers expect to find them, employing transportation equipment and skilled operators with support staff, this is Distribution. Service refers to knowledge-based personnel all along the line; engineers, cargo vessel captains, retail store managers. Production, Distribution and Services employ both Natural Resources and Human Resources efficiencies from processes to consumption measured using input and output quantities, time along the distribution channel and after sales repairs, returns or feedback calls.
So, how many workers does it take to change a light bulb? Start counting from the miners of the natural resources that goes into making the bulb.
Rationale
T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.
