A2 - Business - Operational strategies: scale and resource mix 0.0 / 5 ? Business StudiesOperations managementA2/A-levelAQA Created by: jkavCreated on: 08-01-16 11:04 Economies of scale The benefits enjoyed by a firm as a result of operating on a large scale, leading to a fall in average costs. 1 of 12 Diseconomies of scale The disadvantages experienced by a firm as a result of operating beyond optimum output, leading to a rise in average costs. 2 of 12 Purchasing economies Benefit of buying on a large scale leading to lower average costs from suppliers. 3 of 12 Technical economies Ability of larger firms to buy technically advanced equipment and spread the cost over a larger number of units. 4 of 12 Specialisation The ability to employ specialists, e.g. accountants, and for staff to focus on one particular area of function. 5 of 12 Average cost Total cost divided by the number of units produced to give cost per item. 6 of 12 Communication diseconomy The breakdown in effective communication resulting from an increase in size of operations. 7 of 12 Coordination diseconomy The breakdown in effective coordination resulting from an increase in size of operations. 8 of 12 Resource mix The combination of capital and human resources utilised within a business to achieve the required output. 9 of 12 Optimum resource mix The combination of capital and human resources which allows for the greatest efficiency. 10 of 12 Capital intensive Businesses that rely more heavily upon capital equipment, e.g. machinery and computers rather than labour. 11 of 12 Labour intensive Businesses that rely more heavily upon labour, i.e. the workforce rather than capital equipment. 12 of 12
Chapter 12: Operational Strategies: Scale and Resources Mix 5.0 / 5 based on 1 rating Teacher recommended
Comments
No comments have yet been made