Standard Grade Business Management Unit 2.2 Slides

Why do firms grow? ,[object Object],[object Object],[object Object],[object Object]

Methods of Growth ,[object Object],[object Object],[object Object]

Methods of Growth Defined ,[object Object],[object Object],[object Object]

Growing Internally ,[object Object],[object Object],[object Object]

Integration ,[object Object],[object Object],[object Object],[object Object]

Horizontal Integration ,[object Object],[object Object],Reebok Nike +

Vertical Integration ,[object Object],+ + Forward Integration Backward Integration

Conglomerate Integration ,[object Object],[object Object]

Motives behind mergers & takeovers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Innovation & Competition ,[object Object],[object Object],[object Object],[object Object]

Benefits of Growth ,[object Object],[object Object],[object Object]

This is called economies of scale £25 £30 Cost per table (average cost) £250,000 £150,000 Total cost of production per month 10,000 5,000 No. of tables made each month Extended Factory Original Factory

Economies of Scale ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Diseconomies of Scale ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

What is a Large Firm? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Small Firms (SMEs) ,[object Object],[object Object],[object Object],[object Object],[object Object]

Benefits of SMEs ,[object Object],[object Object],[object Object],[object Object],[object Object]

Standard Grade Business Management Unit 2.2 Slides

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Standard Grade Business Management Unit 2.2 Slides