P2 Hw 23- Growth Flashcards
1
Q
Why does a business want to grow
A
Achieve economies of scale
Increase market power
Increase market share
Increase brand recognition
2
Q
Internal economies of scale
A
factors within the business which cause ACPU to fall as output increases
3
Q
External economies of scale
A
factors outside the business which cause ACPU to fall as output increases
4
Q
Types of internal EoS
A
Purchasing economies
Technical
Managerial
Marketing
Network
Financial
5
Q
Types of diseconomies of scale
A
Coordination & control
Motivation
Communication
Negative effects of internal politics
6
Q
Overtrading
A
when a business expands too quickly without having the financial resources to support quick expansion
