COMM 210 Lecture 1: COMM 210 Theories
1 Dec 2016
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Ex: using the same posters to market two different products. Successful firms capitalize on economies of scale & scope, create management structures and invest in research & development. Once a firm loses the opportunity to be a first mover, it is difficult to regain competitive advantage. Growth through unrelated diversification is a poor corporate strategy. Business ownership patterns have diminished the likelihood of long-term success. Economies of scale: producing on a bigger scale reduces costs. Economies of scope: using the same materials to produce different products. Managerial enterprise: making necessary investments in management, production and distribution in order to capitalize in economies of scope and scale. Research & development: developing new technology, improving the quality of existing products and creating new products. Management hierarchy: separation of upper and lower level management. Separation of top and middle managers (in the case of unrelated diversification) Organizational growth is characterized as a series of developmental phases.
