Scribd
Upload
30 views1 page

Production Decisions

Production decisions must be well planned and coordinated between the production function and marketing. For manufactured goods, the type of manufacturing process must be determined, while agricultural products are affected by seasonality, perishability, and supply and demand. Specifications are important for agricultural products and are often set by customers or standards authorities. Culture also impacts production decisions through requirements around packaging, labeling, product characteristics, and marketing. Physical product elements include tangible attributes like size and color as well as intangible attributes determined by marketing. Packaging protects products and has promotional value, with factors like size, weight, and transportation method determining the best packaging. Labeling not only provides contents information but can also promote brands, with regulations around ingredients and languages potentially demanding

Uploaded by

Akarsh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
30 views1 page

Production Decisions

Production decisions must be well planned and coordinated between the production function and marketing. For manufactured goods, the type of manufacturing process must be determined, while agricultural products are affected by seasonality, perishability, and supply and demand. Specifications are important for agricultural products and are often set by customers or standards authorities. Culture also impacts production decisions through requirements around packaging, labeling, product characteristics, and marketing. Physical product elements include tangible attributes like size and color as well as intangible attributes determined by marketing. Packaging protects products and has promotional value, with factors like size, weight, and transportation method determining the best packaging. Labeling not only provides contents information but can also promote brands, with regulations around ingredients and languages potentially demanding

Uploaded by

Akarsh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

Production decisionsIn decisions on producing or providing

products and services in the international market it is essential that the production of the
product or service is well planned and coordinated, both within and with other functional
area of the firm, particularly marketingProduction process: In manufactured products
this may include decisions on the type of manufacturing process - artisanal, job, batch,
flow line or group technology. However in many agricultural commodities factors like
seasonality, perishability and supply and demand have to be taken into
Specification:Specification is very important in agricultural products. Some markets will
not take produce unless it is within their specification. Specifications are often set by the
customer, but agents, standard authorities (like the EU or ITC Geneva) and trade
associations can be useful sources. CultureProduct packaging, labeling, physical
characteristics and marketing have to adapt to the cultural requirements when
necessary. Religion, values, aesthetics, language and material culture all affect
production decisions. Effects of culture on production decisions have been dealt with
already in chapter three.Physical product:The physical product is made up of a variety
of elements. These elements include the physical product and the subjective image of
the product. Consumers are looking for benefits and these must be conveyed in the
total product package. Physical characteristics include range, shape, size, color, quality,
quantity and compatibility. Subjective attributes are determined by advertising, self
image, labelling and packaging. In manufacturing or selling produce, cognisance has to
be taken of cost and country legal requirements.Packaging:Packaging serves many
purposes. It protects the product from damage which could be incurred in handling and
transportation and also has a promotional aspect. It can be very expensive. Size, unit
type, weight and volume are very important in packaging. For aircraft cargo the package
needs to be light but strong, for sea cargo containers are often the best form. The
customer may also decide the best form of packaging. In horticultural produce, the
developed countries often demand blister packs for mangetouts, beans, strawberries
and so on, whilst for products like pineapples a sea container may suffice. Costs of
packaging have always to be weighed against the advantage gained by
it.Labelling:Labelling not only serves to express the contents of the product, but may
be promotional (symbols for example Cashel Valley Zimbabwe; HJ Heinz, Africafe,
Tanzania). The EU is now putting very stringent regulations in force on labelling, even to
the degree that the pesticides and insecticides used on horticultural produce have to be
listed. This could be very demanding for producers, especially small scale, ones where
production techniques may not be standardised. Government labelling regulations vary
from country to country. Bar codes are not widespread in Africa, but do assist in stock
control. Labels may have to be multilingual, especially if the product is a world brand.
Translation could be a problem with many words being translated with difficulty. Again
labelling is expensive, and in promotion terms non-standard labels are more expensive
than standard ones. Requirements for crate labelling, etc. for international transportation
will be dealt with later under documentation.

You might also like