BENEFITS OF GROWTH - EXPERIENCE CUREV/EFFECT

Question 1

What is the experience cure

Answer 1

cost advantages that occur when operating within an industry on a large scale AND THERFORE BEING ABLE TO MAKE BETTER DESCISIONS

Question 2

as a bs grows and oprates on a largeer scale employyes gain

Answer 2

experience

Question 3

as a bs grows and operates on a larger scale expain the affect on mangers

3 poinys

Answer 3

become more familiar with whats needs doing wenn

who to ask wat to do wahta

how to fix problems whihc makes DM - faster

Question 4

bs starting up and operating on a smaker scal may lack x and therefore what may they do

Answer 4

experience

make more mistakes and be less efficient

Question 5

what is an advantage of experience curve for held by established frms

a major ..

make it difficult for …

Answer 5

major barrier to entry - porter

makes it difficult for new firms to enter mkt as initial unit costs will be so much higher

Question 6

relating to the barrier to entry point from experience curve why is external groth so appealing

Answer 6

enables a bs to enter a mkt segment with buying expertise and experience of a bs that already exists without having to take the time and energy to recreate it

Question 7

experience effect has a significant indulence on

Answer 7

unit costs

Question 8

as a bs gets more experience in producing a products it will lead to it becoming better at

Answer 8

producing that product

therfore it will increase its efficiency leading to lower cost per unit

Question 9

what does experience curve lead to

Answer 9

a cost advantage

Question 10

explain how xp curve leads to a cost advanatge

+ loop

Answer 10

as you got lower cpu so can reduce price or keep higher profit margins

can do porters generic startegy of cost leadership

Question 11

explain further cost advantage from a lower price point

Answer 11

lower price = higher demand = higher mkt share

Question 12

from lower price leading to more mkt share explain knock on effects of ore mkt share

Answer 12

monopoly which acts as BTE - so an increase prices as only seller in mkt

further EOS - as got mroe mkt share means youre bigger therfore producing more units so may get MANAGERIAL , FINANCIAL TECHNICAL EOS therfore reducing acpu

Question 13

what efficiency gains from xp cruve

Answer 13

labour specilalistioan

and

labour eficieny

Question 14

explain efficienyc gain of labour efficiency

Answer 14

over time experienced workers have more confidence and make fewer mistakes meaning they create less waste e.g with raw materials

helps you to save costs

Question 15

explain effieicienyg gains in terms of albour specialisation

Answer 15

xperienced workers become more specialsied in certain taks/part of production process

meaning they produce at a faster rate and

therefore are more productive reducing unit costs as make more over the same period of time

Question 16

experience curve is not Economies of Scale why

Answer 16

experinece curve looks at historical prodcution of untis since day dot

Question 17

Problems and criticisms of xp curve -

Answer 17

empahsis of xp of bs and historical units can encourage complacenct

growing in xp may elad to more resistance

Question 18

explain emphasis on xp of bs and historical units can encourage complacency

Answer 18

therfore If got more xp you may not wanna be innovative or find efficiency gains that reduce acpu even further - as used to the way things work and theyre working well

Question 19

expain how as you grow in xp may lead to more resisance to chang eimpact

Answer 19

therfore this can prevent efficiency gains would reduce acpu

but can use overcoming change startegies but depends on type of strategy used and if it will be effectve