Goals, Production Factors and Results

Abstract

The chapter discusses the role of goals for economic entities. Different types of goals are identified, such as original and derived goals, successive and simultaneous goals, complementary and competing goals. Goals become part of a goal system with formal goals and economic, ecological and social goals. Different forms of economic entity have different goal systems and goal concepts. The factors of production are discussed, and a universal system of factors is introduced consisting of seven interlinked factors of production : personnel, capital, material, energy, services, the law and the natural environment. The use of factors as inputs is discussed along with the diseconomies they can cause. The outcomes of the use of factors of production are discussed, with output, outcome and impact being identified as types of result. The chapter concludes by reviewing ways in which the effects can be measured.

Having lost sight of our goals,

we redoubled our efforts.

Mark Twain (1835–1910)