Analyse how a capital intensive workforce will benefit a business? (9 marks

By adopting a capital intensive workforce, the business will ensure consistency as machinery will have less defects than humans. As a result, it will mean that the business will make products with a consistent level of quality which will then be passed onto the customer. This will mean that, generally, customers will be more pleased with their purchase of the business’ product; there will be a lower percentage of faulty items, resulting in customers having a greater satisfaction and decreasing their number of returns. This will create repeat customers as their reputation of consistent quality will spread and give them an effective competitive advantage.Another benefit to the business as a result of adopting a more capital intensive workforce is that, whilst the initial cost may be high, it will be cheaper than manual labour in the long term. This means that the business will become more efficient and, due to a reduction in labour expenses, their total costs will decrease and therefore their retained profit will increase. As a result, the business will have greater flexibility when setting prices as they will have a larger profit margin, which could give them a price competitive advantage compared to other businesses - especially in a saturated and dynamic market.