Market Analysis and Recommendations for Fantasia

Organizational Structure Language and Theory Fantasia should consider producing larger quantities and reduce the prices of the products as a way of attracting more and more customers. By doing this, she will be advertising her products and entering into the market segment of other countries and geographical areas that have no idea of the existence of FPF pieces. Such a move is necessary for the company to make considering the availability of finances and labor.

The two factors of production are adequate for an economy and labor is viewed as the human effort applied to the production of goods and services. The people in question are those employed and the unemployed who are aspiring to be part of the company hence want to be considered part of the labor available to the economy of the company. Examples of labor include law enforcement, and this factor distinguishes two forms of labor.

The first is an equivalent of the natural resources, which is the human factor and entails the natural ability of persons untrained and uneducated to bring particular processes of production. It is also referred to as the skills a worker has resulting from education, experience or training used in the production process of the custom pieces. Therefore, Fantasia will need to increase the total quantity of labor by increasing the number of people who are available to work and even by increasing the number of work hours per week.

By doing this, she would be creating new job opportunities for other members of the community where their standard of living would be improved. Hence, they will contribute more to ensuring the products produced are of excellent quality to enable them to move faster. Capital, on the other hand, is the production factor produced for use in the production of goods such as machinery, buildings, and tools.

Capital may include physical goods and intellectual discoveries and should satisfy two criteria, that is, the resource must have been produced and can be used to produce other goods and services. FPF will require financial capital that includes money and paper assets such as bonds and stocks all representing claims on future payments. The financial assets mentioned above are not capital, but can be used indirectly and directly to purchase the factors of production or goods.

Intellectual capital is all about the technological expertise acquired by business over time that includes its trade secrets and unique processes of the business. The social capital is also significant for FPF because it gives the company the ability to operate because the society has agreed to a system of order, law, and conduct. Having these elements in place facilitates an economic environment that allows the business to operate in other geographical positions.

The two factors of production are under the classical view of economics where the economy is free flowing, and the prices and wages are freely adjustable to the difficulties of demand over time. Therefore, reducing the prices is in line with the time because it will reach a time when the prices will quickly go up. Moreover, when the economy is bad, the prices and wages of the company will freely adjust downward.

The assumption of this model dictates that the economy is at full employment always implying that everyone who wants to work is working, and all the required resources are utilized to their capacity. Thereby, by allowing competition to work, the economy adjusts automatically and gravitates towards full employment, potential output. Classical economists believe that the economy is self-correcting, and this implies that when a recession occurs, no help is needed from anyone, it will work its way out of the problem (Shafritz, Ott & Jang, 2011).

Under this theory, the management will focus on getting the best people and equipment for the production of goods and scrutinize each task of production. The theory of bureaucratic is where it establishes a hierarchy that will describe the element of the division of labor in the company and eventually recognize the importance of specialization. Systems theory is also relevant in Fantasia's case because it describes the interrelatedness of all parts of an organization.

As such, it looks at how one change in one area of the company can affect multiple other parts. The increase in production of the pieces by FPF will not always interact in a linear manner. Therefore, it is vital for Fantasia to consider her decision because the small change can cause significant changes in other parts of the company.

Moreover, the large production changes can result in small changes in other areas because the organizational structure language and theory of the company acts as a system that interacts with the environment. Therefore, any equilibrium constantly changes since the organization adapts to.