Business Organisatiom
- Created by: Maryam
- Created on: 23-05-13 18:30
Why expand: - Increase sales – leads to increase in profits. - Increase Market Share – retailers will be much more prepared to stock the products on the business. - Take advantage of Economies of Scale – Reduces the cost of producing a product. Why Not Expand: - To keep control. - To offer a personal service to the customers. - To avoid too much risk. - To avoid increased worry and workload. Economies of Scale: The reason why the average costs of each item fall as a firm expands. Organic Growth: Benefits: - Slow and Steady - Often paid for from profits. - Easier to manage and control. Drawbacks: - Too slow for some owners. - Market Share could fall. - No gains from integrating with another business…
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