Combining factors of production to achieve growth objectives
A Land Securities Group case study

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Suppose you wanted to start a business. What would you need? First, you would have to decide what products your business would offer. This decision would influence your view on what premises (or land) you needed, the kind of machinery required and the type of labour to be employed. In addition, you would need to find the money (capital) to pay for setting up all these things.

Factors of Production

Above all, however, you would need organisational skills. In business terms an ability to organise, together with a willingness to take risks in pursuit of financial returns, is called enterprise. Some would consider enterprise to be the most important of the four factors of production, as poorly run businesses rarely survive for long.

Land Securities has been at the forefront of the UK commercial property investment and development industry for over 60 years. It is a business that combines the factors of production to create returns for its shareholders. It manages property and generates rental income. It remains market leader by providing commercial accommodation and property services to more than 2,000 customers.

Land Securities develops large scale building projects such as office blocks and retail centres. It then rents out the premises, providing all the services that tenants require. Land Securities does not actually build properties itself; but contracts out the building work to other businesses. It does, however, provide the enterprise and bears the risk of a development not succeeding.

Land Securities Group | Combining factors of production to achieve growth objectives