Size & Scope of Organization

What are "Economies of Scale"?

• Economies of scale are cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable.

• The ratio of the useful work performed by a machine or in a process to the total energy expended or heat taken in.

• Refers to factors that allow a company to produce goods or services better or more cheaply than its rivals

• Is an organization's future ability to generate larger profits, expand its workforce and increase production

What is a "National Business" ?

• Operating as a Joint Venture in many countries

• Operating as a corner shop

• Operating as a subsidiary in other Countries

• Operating within the country

"Sizes of Business " can be categorized as?

• Small, Medium, Large

• Private Limited, Corporation, Multinational

• Partnership, Entrepreneur, Sole proprietor

• Small, Small & Medium, Large

"Business diversification" best described as?

• Is a strategic step taken by a company to develop the existing market rather than looking for a new market

• Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio.

• Typically refers to all of the stages involved in bringing a product from concept or idea through market release and beyond

• The selling of a company's products in a particular market or area.

What is a competitive advantage?

• Refers to factors that allow a company to produce goods or services better or more cheaply than its rivals

• Are the resources and capabilities that comprise the strategic advantages of a business

• Also known as Key Results Areas, are the areas of your business or project that are vital to its success

• All of the above