Internal Economies of Scale Mindmap
- Created by: Demi Mae Yip
- Created on: 12-04-13 17:33
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- Internal Economies of Scale
- Administrative
- Communication systems can be improved through new technology
- They are able to employ specialist staff and introduce coordinated adminstrative systems
- Financial
- Large firms will find it easier to obtain finance as they are seen more secure by lenders
- Interest rates will be lower as they present a lower risk to providers of capital
- Technical
- Modern equipment can be installed which will improve efficiency
- Highly trained technicians can be employed in other to improve the reliability of the production process
- Marketing
- Employ mass marketing strategies such as TV Advertising
- Investment in marketing research, to minimise the risks involved
- Risk-bearing
- Large firms can diversify through takeovers into other business areas in order to reduce risks
- Large firms can afford to take greater risks in new product development
- Administrative
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