ADMS 1010 Lecture Notes - Lecture 3: Small Is Beautiful, Research And Development, Concept Map
6 Jan 2017
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Understanding claims and how they are presented can help you to write more effectively. ^large firms are able to capitalize on economies of scale and scope: Scale: large plants make products at a lower cost than small ones because cost per unit drops as volume of output rises. Scope: large plants use many of the same raw and semi-finished materials and intermediate production processes to make a variety of different products. First mover advantage (cid:523)first to establish size, economies, distribution networks (cid:524) Functional divisions, management hierarchy, marketing & geographical expansion. ^lower & middle managers to coordinate product flows. ^top managers to coordinate and plan (does this sound familiar??) ^appropriate organizational size depends on the nature of the activity. Need for order: large-scale, possibly global unity and coordination. ^when growth is through unrelated diversification stray from core competence. Duality: one size does not fit all (both are needed)
