Business Organisatiom

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  • 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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