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

Page 0: Introduction

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...
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Page 1: Enterprise and risk

Enterprise refers to all the organisational skills that go into creating a product or service. It also includes a willingness and ability to take risks in order to gain rewards and to think up new products or services. Land Securities manages its risks by making sure it has a balanced portfolio. The portfolio will contain some developments that carry a substantial element of risk but which, if...
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Page 2: Land and labour

'Land' in economic and business terms includes earth, sea and sky and all the natural resources within them. Like nearly all economic resources, land is scarce - there is less of it available than people want to use, therefore people must pay to own or use it. When firms use land efficiently, the land rises in value. Land Securities often puts land to new uses. If the buildings already on it are...
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Page 3: Workplace legislation

Labour is an important factor of production and managing labour effectively involves understanding workplace legislation. Land Securities looks to comply with all laws relating to the workplace. These include ensuring that nobody is harassed or treated differently because of their age, race, colour, disability, creed, religion, or sexual orientation. The legislation that Land Securities must...
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Page 4: Capital

In the context of factors of production, capital refers to the buildings, machinery, equipment (including vehicles) and tools that businesses use to create goods and services. In this context, capital does not mean 'money' but means the real assets that businesses purchase or hire, using money. Land Securities operates in the property market, where capital is a key factor of production. The...
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Page 5: Conclusion

Land Securities' stated aim is to create sustainable shareholder returns through good financial management. This relies on careful management of all four factors of production. Land, Labour and Capital are all important, but Enterprise is arguably the most important of all. With its sound organisational and entrepreneurial skills, Land Securities continues to be the market leader in the UK...
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