Business Management SL
6
Chapters
175
Notes
Unit 1 - Introduction To Business Management - QB
Defining Business: From Raw Materials to Recognized Revenue
Key Business Functions: The Pillars of Success for All Sizes
Unraveling Economic Sectors: From Raw Materials To Advanced Information
Top Reasons To Start A Business: Opportunities Unveiled!
Unlocking Success: Essential Steps For Start-Up Businesses
6 Steps To Avoid: Common Pitfalls New Businesses Face
Unveiling Business Basics: From Resources To Sectors
Starbucks & Tata Coffee: A Strategic Union Explained
Private Vs. Public Sectors: Key Differences Explained
Exploring Common Types Of Profit-Based Organizations
Unraveling For-Profit Social Enterprises: Purpose Over Profit
Understanding Non-Profit Social Enterprises: Key Insights
Understanding Business Types: From Sole Trader To Social Enterprises
Understanding Private Vs. Public Sectors: O2S Case Study
Vision Vs. Mission: The Key To Successful Business Aspirations
Unlocking Business Success: Aims vs. Objectives, Strategies vs. Tactics
The Imperative for Businesses to Adapt: Internal and External Triggers
Unlocking Corporate Social Responsibility: Its Power & Impact
Mastering SWOT Analysis: Strategic Planning For Business Success
Unlocking Growth: Dive Deep Into Ansoff Matrix Strategies
Essential Business Checklist: Vision, Mission, Strategy & More!
Discover Route 11 Chips: Sustainable Snacking Redefined!
Understanding Stakeholders: Internal Vs. External
Stakeholder Insights: Internal Vs. External Interests Revealed
Ecosoluciones: Transforming Alumbre With Wind Energy
Mastering STEEPLE: Navigate Business Growth Amidst External Factors
Understanding Economies & Diseconomies of Scale in Business
Internal Vs. External Business Growth: Which Is Best?
Unveiling STEEPLE: Key Influencers of Business Success
Unlocking Acquisition Insights: The Tale of Statson Inc & FlowForm
Understanding Globalization: Its Impact On Modern Business
Secrets Behind Multinational Companies' Rapid Growth
Multinational Companies: Boon or Bane for Host Countries?
Unveiling MNCs: Impacts On Global Economies
Khumalo Pottery Vs. American Giant: A Tale Of Authenticity And Scale
Unit 2 - Human Resource Management - QB
Unit 3 - Finance & accounts - QB
Unit 4 - Marketing - QB
Unit 5 - Operations management - QB
Unit 6 - Assessment
Business Management SL
Unit 1 - Introduction To Business Management - QB
Understanding Economies & Diseconomies of Scale in Business
682 words
4 mins read
Last edited on 5th Nov 2024
Table of content
Key concepts 📌
- Scale of Operations: Size or volume of output a business produces.
- Economies of Scale: When average unit cost reduces as business size increases.
- Diseconomies of Scale: When average unit cost rises as business size increases.
- Efficiency: Measured in terms of costs of production per unit.
Cost of production breakdown 📚
-
Fixed Cost (FC): Doesn't change with production. Real-world Example: Monthly rent for a factory.
-
Variable Cost (VC): Changes with production. Real-world Example: Raw materials like wood, metal springs, etc., for furniture manufacturing.
-
Total Cost (TC): TC = FC + VC
-
Average Cost (AC): AC = TC ÷ Quantity produced (Q)
Economies of scale simplified 💡
- As a business produces more, fixed costs get spread over more units, reducing average costs.
- So, bigger business ➡️ lower average costs ➡️ more efficiency!
Unlock the Full Content! 
Dive deeper and gain exclusive access to premium files of Business Management SL. Subscribe now and get closer to that 45 🌟
Business Management SL
Unit 1 - Introduction To Business Management - QB
Understanding Economies & Diseconomies of Scale in Business
682 words
4 mins read
Last edited on 5th Nov 2024
Table of content
Key concepts 📌
- Scale of Operations: Size or volume of output a business produces.
- Economies of Scale: When average unit cost reduces as business size increases.
- Diseconomies of Scale: When average unit cost rises as business size increases.
- Efficiency: Measured in terms of costs of production per unit.
Cost of production breakdown 📚
-
Fixed Cost (FC): Doesn't change with production. Real-world Example: Monthly rent for a factory.
-
Variable Cost (VC): Changes with production. Real-world Example: Raw materials like wood, metal springs, etc., for furniture manufacturing.
-
Total Cost (TC): TC = FC + VC
-
Average Cost (AC): AC = TC ÷ Quantity produced (Q)
Economies of scale simplified 💡
- As a business produces more, fixed costs get spread over more units, reducing average costs.
- So, bigger business ➡️ lower average costs ➡️ more efficiency!
Unlock the Full Content!
Dive deeper and gain exclusive access to premium files of Business Management SL. Subscribe now and get closer to that 45 🌟
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