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: 232 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 PowerPoint Presentation: IB Business and Management .com IB Business and Management T he IB Diploma Business and Management course delivered IN STYLE , ONLINE . ©PowerPoint Presentation: z Growth & Evolution i 1.7PowerPoint Presentation: 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 risksPowerPoint Presentation: z Measuring growth Value of sales turnover (revenue) Market share Sales % of industry total Value of capital employed # of employees hiredPowerPoint Presentation: z Greater financial strength to withstand change s 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)PowerPoint Presentation: 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/kgPowerPoint Presentation: 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 onPowerPoint Presentation: z Lower average costs of production per unit the more a firm produces productivity efficiencies $25K Quantity produced Cost per unit AC Q 1 Average cost 1 Q 2 Average cost 2PowerPoint Presentation: z Internal e.o.s . technical small largePowerPoint Presentation: z Internal e.o.s . financial small largePowerPoint Presentation: z Internal e.o.s . managerial small large marketing finance Human resourcesPowerPoint Presentation: z Internal e.o.s . specialization large smallPowerPoint Presentation: z Internal e.o.s . marketing large smallPowerPoint Presentation: z Internal e.o.s . small commercial largePowerPoint Presentation: z Internal e.o.s . small Risk-bearing largePowerPoint Presentation: z Economies of scale Not just Buying in bulk!!! Even small businesses can do thisPowerPoint Presentation: 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 ?PowerPoint Presentation: 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 growthPowerPoint Presentation: 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.
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: 232 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 PowerPoint Presentation: IB Business and Management .com IB Business and Management T he IB Diploma Business and Management course delivered IN STYLE , ONLINE . ©PowerPoint Presentation: z Growth & Evolution i 1.7PowerPoint Presentation: 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 risksPowerPoint Presentation: z Measuring growth Value of sales turnover (revenue) Market share Sales % of industry total Value of capital employed # of employees hiredPowerPoint Presentation: z Greater financial strength to withstand change s 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)PowerPoint Presentation: 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/kgPowerPoint Presentation: 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 onPowerPoint Presentation: z Lower average costs of production per unit the more a firm produces productivity efficiencies $25K Quantity produced Cost per unit AC Q 1 Average cost 1 Q 2 Average cost 2PowerPoint Presentation: z Internal e.o.s . technical small largePowerPoint Presentation: z Internal e.o.s . financial small largePowerPoint Presentation: z Internal e.o.s . managerial small large marketing finance Human resourcesPowerPoint Presentation: z Internal e.o.s . specialization large smallPowerPoint Presentation: z Internal e.o.s . marketing large smallPowerPoint Presentation: z Internal e.o.s . small commercial largePowerPoint Presentation: z Internal e.o.s . small Risk-bearing largePowerPoint Presentation: z Economies of scale Not just Buying in bulk!!! Even small businesses can do thisPowerPoint Presentation: 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 ?PowerPoint Presentation: 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 growthPowerPoint Presentation: 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