section 10

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  • operations management 2
    • rationalisation is about improving efficiency by reducing overhead costs
      • this can be done by
        • closing an administrative department and delegating their work somewhere else.
        • closing a factory and moving the production to another site
        • reducing the number of mangers
    • economies of scale
      • External
        • Moving closer to suppliers
        • moving closer to customers
        • moving in area where a grant is available
        • moving into a area where demand for the product is high
      • Internal
        • finance economies of scale
        • marketing economies of scale
        • managerial economies of scale
        • purchasing economies
        • Untitled
      • diseconomies of scale
        • decisions would take a long time to reach the hole work force this would slow down everything.
        • the task might become to complex to mange this would mean that different departments might be doing similar things without realising

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