size of business

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  • Size Of Businesses
    • measuring size of business
      • capital employed
      • sales turnover
      • market capitalization
      • number of employees
        • company with few workers is a small business where as a company with many workers.but this is not always true as some automated factories need only few workers to operate.
      • market share
    • significance of small and micro-businesses
      • the competition that it creates with having many businesses, without this larger firms would exploit the market with higher prices and poor services
      • often run by dynamic entrepreneurs  with great new ideas of good and services for consumers, creates variety in the market
      • often supply specialist G&S to important industries in a country
      • many jobs are created, and as a whole it has great significant in the working population
      • all firms were small at one point,small firms of today are the future large firms, and the more small firms are encouraged to establish and expand, the greater the chances of country being benefit from large scale organisation
      • smaller firms may enjoy lower average costs than larger firms and this could be passed on to the consumers to
    • Business growth
      • external(A2)
      • internal  / organic growth
      • Why grow the business?
        • increased profits
        • increased power and status of the owner and director
        • increased economies of scale
        • reduced risks of being takeover target
        • increased market share
  • its is common to compare businesses by their sizes.who want to know how large a business is?there is no internationally agreed definition of what a small or large business is
    • measuring size of business
      • capital employed
      • sales turnover
      • market capitalization
      • number of employees
        • company with few workers is a small business where as a company with many workers.but this is not always true as some automated factories need only few workers to operate.
      • market share
  • total value of sales made by the business in a give time. this is used when comparing in the same industries
    • the total value of all long term finance invested in the business. compares only in one industry
      • the total value of companies issued shares.can be used with those who have issued shares(plc)
        • sales of the  business as a proportion of total market shares, if a firm has high market share then it is a leader in the industry and comparatively large
          • market capitalization= current share price * total number of shares issued
            • the total value of companies issued shares.can be used with those who have issued shares(plc)
            • (total sales of business / total sales of industry)*100
              • sales of the  business as a proportion of total market shares, if a firm has high market share then it is a leader in the industry and comparatively large
              • expansion of a business by means of opening new branches, shops, or factories
                • internal  / organic growth

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