11 For an automated, modern factory, explain which method of measuring size is LEAST useful.

Ch 3 Size of business
Hajra
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Re: 11 For an automated, modern factory, explain which method of measuring size is LEAST useful.

Post by Hajra »

K: For an automated, modern factory, the number of employees is the least useful way to measure size.
App: For example, a car factory using robots may have very few workers but still produce thousands of vehicles.
An: This measure ignores how much machinery or technology is used, doesn’t show the value of output, and gives a false idea of how large or efficient the business actually is.
Mamoona Hussain
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Re: 11 For an automated, modern factory, explain which method of measuring size is LEAST useful.

Post by Mamoona Hussain »

KN: The least useful method would the the labour intensive measure as the factory is designed to operate on machinery and capital goods.
APP: For instance, if the labour intensive measure is used to calculate the size of a capital intensive business like a car manufacturing factor, it will appear much smaller in size then it actually is.
AN: Due to this, the stakeholders of the business can get the wrong idea and make wrong decisions about investing their money, due to which chances of returns/rewards decrease and this also limits the finance raised by the business which could have been used by the car manufacturer to imrove the quality of their cars, add new features or to expand. However this would not be possible by using the labour intensive measure as it gives the wrong image of the factory's size and therefore making it the least useful.
M huzaifa jillani
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Re: 11 For an automated, modern factory, explain which method of measuring size is LEAST useful.

Post by M huzaifa jillani »

(KN)
The number of employees is the least useful way to measure the size of an automated modern factory.
(APP)
For example a car manufacturing plant might produce thousands of cars every month using advanced machines and robot but only employ a small number of workers.
(AN)
This means that even though the factory is large and produces a lot it would appear small if we measured size by the number of employees.
There fore other measures such as value of output or capital employed would give a more accurate idea of the factory real size an importance.
Shuraim Arif
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Re: 11 For an automated, modern factory, explain which method of measuring size is LEAST useful.

Post by Shuraim Arif »

(KN) The number of workers it employs.
(APP) For example, an automated factory that manufactures cars would be capital intensive, meaning it would employ little to no people, and of the people it employs, most of them would be given supervising tasks to make sure the process of automated manufacturing is going smoothly.
(AN) This means that even though the car manufacturing company would be a large company, but if its size is measured by the number of people it employs, it may seem like a very small company, given that it employs less workers due to being capital intensive. This means that it is almost impossible to get the true nature or size of the business by using only one method of measuring the size, that too, measuring the number of employees in a capital intensive business, as it leads to false assumptions and misinterpretations by stakeholders.
hassanalizafar
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Re: 11 For an automated, modern factory, explain which method of measuring size is LEAST useful.

Post by hassanalizafar »

[KN]using no of employees to measure size can give a incorrect result as business relies more on machines than on people in an automated industry.
[APP]For instance, Toyota automated production plants can manufacture thousands of cars using advanced robotics while needing fewer workers compared to traditional factories.
[AN]This means that even with a smaller workforce the business can still produce a large output which making it seem smaller than it actually is which may confuse investors and lenders which lead to inaccurate comparisons with other firms which cause poor investment decisions.
Shaliza khawaja
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Re: 11 For an automated, modern factory, explain which method of measuring size is LEAST useful.

Post by Shaliza khawaja »

In a autmated factory using the number of employees wold be the least useful way to measure the size of business as most work is done by machine
for example in a car maching factory the whole industry automated and and only needs a couple of workers like supervisors or engineers
meaning number of employees does not reflect the production capacity as it could have high output but very few employees, it could also give investors misleading information about the busienss size underestimating it and ignoring more important indcators like capital employeed or output .
sarah_naeem
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Re: 11 For an automated, modern factory, explain which method of measuring size is LEAST useful.

Post by sarah_naeem »

[KN]: For an automated, modern factory the method that is least useful to measure the size of the business is number of employees as the business is mainly depending on machinery rather than humans.
[APP]: For example, if a fully automated toy factory is measured by number of employees it would appear much more smaller in size but if its measured by value of sales it would rather appear much more larger in size.
[AN]: Thus, this shows not any method is accurate to measure the size of business and that sometimes specific methods should be used to measure specific firms and that using wrong methods could be misleading and can lead to investors making the wrong decision which could further lead to wastage of money and would lose customer's trust as they would see false information being spread about the business.
Areeba Arshad
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Re: 11 For an automated, modern factory, explain which method of measuring size is LEAST useful.

Post by Areeba Arshad »

[KN] The number of employees is often used to measure business size, but it’s less effective for certain types of firms.
[APP] In a modern automated factory, machines and technology perform most of the work instead of human labour.
[AN] This means the business could appear small based on employee numbers, even though it has high production capacity and valuable assets making this measure misleading and unable to reflect the factory’s true scale or investment level.
Tuqwa
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Re: 11 For an automated, modern factory, explain which method of measuring size is LEAST useful.

Post by Tuqwa »

kn:Business size can be measured in different ways such as by number of employees capital employed or sales value.
app:For an automated modern factory the number of employees is the least useful measure this is because such factories rely mainly on machines and technology rather than human labour so they may have very few workers even though their production scale and investment are large.
an:therefore measuring size by employees would underestimate the factory’s true scale and capital employed or output value would give a more accurate picture.
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