Factors of Production:
The Creation of Tea
By Chandhini Friedey
The creation of tea involves several key factors, including capital, labour, and natural resources. Capital encompasses various forms such as money invested in the business, intellectual capital like trade secrets and recipes, non-liquid capital goods such as machinery and buildings, and liquid capital that can be easily converted to cash like wages and advertising expenses.
Factors of Production:
The Creation of Tea
By Chandhini Friedey
Labour
The human effort (physical or mental) used in the production of goods or services.
Delivery Drivers
Transport raw leaves from farms to factories or finished tea to stores.
Packaging Workers
Place tea in boxes and bags and ensure proper labeling.
Tea Testers/Quality Control
Check for he flavour, strength, and smell of tea before it is sold.
Factory Workers
Operate machines, monitor drying/oxidation, and help sort and package tea.
Tea Pluckers
Skilled workers who pick the freshest leaves by hand.
Management
Decision-makers who coordinate resources and guide business operations.
Finance Managers
Controlling how the business spends money and stays profitable.
Sales Manager
Overseeing sales to stores, cafes, or international buyers.
HR Managers
Hiring workers, setting schedules, and ensuring worker safety.
Marketing Managers
Designing labels, running ads, and promoting the tea in stores or online.
Factory Managers
Ensuring machines and workers are running smoothly during production.
Planation Manager
Oversees/supervises tea growing, harvesting, and fertilizing.
Capital
Money invested in the business.
Intellectual Capital/Property - Business's trade secrets or ideas.
- Recipes for signature blends
- Knowledge of processing methods
- Branding and packaging innovation to appeal to markets (eco-friendly, herbal, luxury, etc.)
Non-Liquid (Capital Goods) - Part of the everyday operation and cannot be converted into liquid capital easily.
- Tea factories and drying buildings
- Machines (rollers, dryers, fermenters, packaging machines)
- Trucks and shipping containers
- Tools like baskets and trays
Liquid Capital - Asset can be transformed into cash at any time with minimum effort.
- Wages for workers
- Buying packaging and supplies
- Paying for electricity, water, and fuel
- Advertising the final product
Information
The knowledge, research, or data used to make smart business decisions.
Production Knowledge
- Data on ideal harvest time for different types of tea
- Knowledge of oxidation, withering, rolling, and drying techniques to produce different flavours
- Weather/climate information used to plan harvesting and planting cycles
Customer Reviews and Feedback
- Online reviews on websites
- Complaints help identify weaknesses or areas for improvement
- Helps decide what new flavours or formats to launch
Government and Legal Information
- Importing/export regulations for international sales
- Information on fair-trade standards or pesticide regulations
- Health guidelines for labeling
Competitor Information
- Checking prices and packaging styles of competing tea brands
- Observing how competitors advertise
- Learning from successful brands' strategies to stay relevant
Consumer Preferences
- Surveys and feedback used to understand what flavours are most popular.
- Research into demand for organic- caffeine-free, or herbal options.
- Info about cultural tea habits
Market Trends
- Tea industry trends
- Tracking seasonal popularity
- Recognizing shifts toward sustainable and eco-friendly packaging
Raw Materials 📦
Goods used up in the production process to make the final product.
Labels
For packaging and branding the finished tea product.
Cotton Cloth Bags
Used for packaging individual servings of tea and kneading.
Fresh Tea Leaves
Picked from the top of the tea plant (often the bud and the first two leaves).
Natural Resources 🍃
Resources that come from the Earth and are used in the production of tea.
Rain/Water
Rainfall is crucial to nourish tea plants. Some water is also used during steaming (especially for green tea).
Sunlight
Contributes/affects the photosynthesis process and influences flavour development. Also used in the drying process during withering.
Soil
Fertile, well-drained, acidic soil is
essential for healthy tea plants.
Camellia Sinensis (Tea Plants)
Grown in tropical and subtropical regions.