Operations Management

Specialisation, (division of labour) =

• efficient and improved quality of work.
• workers may get bored
• Bored workers can lead to poor quality products.

Creates seperate firms within the production of you product (shipping agents moving cadburys chocolate bars).

Economies of Scale:

• Purhasing economies = Buying in bulk, it's cheaper per unit.
• Marketing economies = Buying advertising things in bulk will be cheaper.
• Managerial economies = Large firms have more money to employ specialist managers such as lawyers.
• Finnancial economies = Bigger firms are more substantial so…