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Burt's Bees Beeswax Lip Balm: Factors of Production

Project for online economics

Natalie Matthai

on 24 June 2017

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Transcript of Burt's Bees Beeswax Lip Balm: Factors of Production

Four Factors of Production
Burt's Bees: Website Overview
The first step in the production of Burt's Bees lip balm is harvesting beeswax from four farms in East Africa using wild crafted bees. Farmers hollow out logs from fallen trees and fill them with sweet grass to attract bees. The bees make their hives in these logs for three months, until the hive becomes full of honeycombs, and they need to relocate. The farmers harvest the wax and send it to a distributor in New Jersey, where the wax is filtered, pelleted, and melted. Plant workers later add in other things like coconut, peppermint, and soybean and canola oils to complete the lip balm.
After all the ingredients have been mixed into the beeswax and melted together, the liquid is poured into the goldenrod plastic lip balm tubes. These tubes are made of polypropylene, and are injected into a mold that makes the plastic casing. The packaged balms are heated and cooled to prevent cracking as they harden and are finally capped and labeled on conveyor belts by machinery. The balms are boxed and ready to be shipped out.
The finished products are placed on trucks and shipped from New Jersey and stocked in drugstores and Targets around the country. For international shipping, the packages would be shipped by way of cargo ship and stocked in international locations. Some of these locations are the U.K., Taiwan, Hong Kong, Ireland, and Canada. There is also an online website, where people can order and have items shipped to their homes! Burt's Bees is marketed heavily through popular cosmetic magazines, and even through television commercials.
Burt Shavitz
Burt Shavitz lived from 1935-2015, and is known as the "wild-bearded and free spirited" co-founder of Burt's Bees. He lived very simply in his 300 square foot tiny home without electricity or running water in Maine. He dedicated his life to beekeeping and becoming closer to nature. Shavitz instilled the values of living simply, naturally, and responsibly into his company, and his legacy still lives out in the company's environmentally friendly success today.
Works Cited



Customer Satisfaction
Burt's Bees is dedicated to their triple bottom line: people, profit, planet. They promise to look after their employees, customers, families and even themselves. They also pledge to care for the environment, and use natural and simple ingredients and packaging. They plant urban gardens and hive boxes, striving to help the bee population recover. Through their "Greater Good" project, they strive for environmentally friendly practices, while getting customers the results and quality they deserve. All in all, customers choose Burt's Bees because they know they are supporting an environmentally friendly company that is working avidly to make the world a better place. This helps consumers feel pretty good about supporting this company.
Burt's Bees Beeswax Lip Balm: Factors of Production
By: Natalie Matthai
Economics Hour 2

Land: Any natural resource used to produce goods and services
Labor: The effort that people contribute to the production of goods and services, for which the worker is paid
Capital: There are two types of capital
Physical capital: Human made objects which are used to create other goods and provide other services
Human capital: The knowledge a person obtains to provide goods and services
Entrepreneurship: An entrepreneur is a person who combines the other factors of production - land, labor, and capital - to earn a profit.
Burt's Bees was founded in 1984 by Maine artist Roxanne Quimby, and local beekeeper Burt Shavitz. The two started out only producing candles in 1989, but soon progressed to making their iconic beeswax lip balm in 1991. In 1994, Burt's Bees relocated from Maine to North Carolina to focus on health and beauty. Shortly after, in 1999, Burt's Bees went global, opening offices around the world! The rest is history! Burt's Bees beeswax is harvested now in Africa, and goes through a clean and meticulous process in a factory in New Jersey for preparation and packaging, and then is ready to be shipped out worldwide for the enjoyment of consumers. Burt's Bees is dedicated to sending zero waste to landfill, and also marks their support to save the bee population through their "Wild for Bees" campaign. All in all, Burt's Bees is dedicated to their project, "The Greater Good" and hoping to change the world by setting an example for other companies to follow.
Land: Wild bees to produce the beeswax, tree logs, baobab trees to hang the logs from, coconut, peppermint, and several oils.
Labor: Farmers to prepare the logs and harvest the beeswax, drivers of trucks and boats to transport the wax to the plant in New Jersey from Africa, and plant workers to create the balm in the plant.
Capital: Saws to carve the logs, planes, cargo ships and trucks to transport the wax, and tanks and machines to filter, pellet, melt, and mix the beeswax.
Land: The polypropylene plastic polymer, and the cardboard from trees used to package the lip balms.
Labor: Humans are needed to make sure the machines get started and are operating smoothly. Workers are also needed to package the finished balms for shipping.
Capital: Injection mold machines, conveyor belt machines that individually fill the tubes with the beeswax, and then cap and label the containers.
Land: Fossil fuels are used to fuel ships and trucks for transportation, cardboard boxes are used for ease of shipment and protection, and paper is used for magazine advertizements.
Labor: People are needed to operate vehicles for transportation and stock the shipments in stores.
Capital: Cargo ships and trucks for transportation, and magazines and TVs for advertizements.
Full transcript