Diseconomies of scale Flashcards
1
Q
list the 3 diseconomies of scale`
A
poor communication
lack of commitment from employees
weak coordination
2
Q
how are large businesses affected by poor communication
A
the larger the business is the harder it becomes to send and receive accurate messages
3
Q
explain lack of commitment from employees
A
a large firm hires many workers and its possible one may never get to see the top managers of the business resulting in workers feeling undervalue and unimportant
4
Q
explain weak coordination
A
it takes longer for a final decision (made by managers) to reach all parts of the firm and the different groups of workers making it difficult to work towards and achieve the same objective
