logging in or signing up IB Business and Management Business Organisation and Environment 1.7 G BusinessManagement Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: Embed: Flash iPad Copy Does not support media & animations WordPress Embed Customize Embed URL: Copy Thumbnail: Copy The presentation is successfully added In Your Favorites. Views: 11 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: July 14, 2012 This Presentation is Public Favorites: 0 Presentation Description IB Business and Management Business Organisation and Environment 1.7 Growth and Evolution I Comments Posting comment... Premium member Presentation Transcript Slide 1: IBBusinessandManagement.com IB Business and Management The IB Diploma Business and Management course delivered IN STYLE, ONLINE. © Slide 2: z Growth & Evolution i 1.7 Slide 3: z introduction Driving & restraining forces for growth Continual aim Definition: Expansion in size of its operations Reap the benefits of larger scale production – economies of scale Larger market share to get better market standing & market power Means of survival in competitive environment To spread risks Slide 4: z Measuring growth Value of sales turnover (revenue) Market share Sales % of industry total Value of capital employed # of employees hired Slide 5: z Greater financial strength to withstand changes in external environment Growth is good, right? Greater risks to pursue much higher rewards can be taken Profitability brings security + investors & capital (reinforcing spiral of success) Slide 6: z Thinking 1 owner = 5,000 kg wheat 10 owners = 50,000 kg wheat Who’s likely to be more profitable? Costs are key! Same sale price/kg Slide 7: z Economies of scale Lower average costs of production per unit the larger a firm gets productivity efficiencies 50 cows 5000 cows A Business has to pass costs on Slide 8: z Lower average costs of production per unit the more a firm produces productivity efficiencies $25K Quantity produced Cost per unit AC Q1 Average cost1 Q2 Average cost2 Slide 9: z Internal e.o.s. technical small large Slide 10: z Internal e.o.s. financial small large Slide 11: z Internal e.o.s. managerial small large marketing finance Human resources Slide 12: z Internal e.o.s. specialization large small Slide 13: z Internal e.o.s. marketing large small Slide 14: z Internal e.o.s. small commercial large Slide 15: z Internal e.o.s. small Risk-bearing large Slide 16: z Economies of scale Not just Buying in bulk!!! Even small businesses can do this Slide 17: z External e.o.s. Technological progress Improved transportation & communication networks Better trained labour Regional specialization How would a new technology company benefit from basing itself in silicone valley? Slide 18: z Why Remain small? diseconomies of scale Harder to control & manage effectively Mistakes & quality problems Communication problems Confusion, isolation → errors & quality problems outsourcing Subcontract production Keep control of intellectual property satisficing Personal reasons to forego growth Slide 19: z Why Remain small? Benefits of being large e.o.s already done & dusted Benefits of being small Discussion map p. 117-118 Can a small firm survive & prosper? Reasons for Reasons against Conclusions & justifications Key points highlighted & then written out & explained in full Question 1.7.1: p. 119 You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.