7.0 Business Growth

Cards (6)

What are the economies of scale? 
Purchasing/Bulk Buying
Marketing
Technical
Financial
Managerial/Administrative
What is horizontal integration? 
What two businesses at the same stage of production merge
What is forward vertical integration? 
When a business merges with a customer base
What is backward vertical integration? 
When a business merges with a supplier
What is conglomerate integration? 
When two unrelated businesses merge
Why do some businesses remain small? 
Some businesses don't want to grow
Small businesses can sirvive on low cost structure
Many services can be delivered more effectively on a small scale
Some customers like to purchase goods from specialist outlets
Small businesses can adapt quickly