Management and information systems

• What are the 4 examples of management?

  1. Economies of scale
  2. Global supply chains
  3. Outsourcing
  4. Offshoring
• What is economies of scale?

  Economies of scales is the concept of increasing profits by producing a larger amount of the product, as overall the price of each product is lowered
• How have companies saved money be up-scaling their production(eos)?

  • A large amount of products can be bought in bulk making it cheaper
  • Products can be produced quickly on production lines reducing labour costs
  • Products can be transported in large shipments which is cheaper than many small ones as there are less trips
• Describe what a global supply chain is?

  A supply chain is the organised management of product flows from when they are manufactured to when they are delivered to consumers. Due to the ability to communicate information and transport product companies can now have different stages of production in different countries
• What is the benefit of supply chains?

  • Overall minimises costs as each stage of production is specialised rather than one factory having to control every aspect of production, saving time and money
• What is outsourcing?


  • Outsourcing is the hiring of other companies to complete company tasks that are essential, but do not necessarily need to be completed by the company itself (e.g. call centres, advertising)
  • Outsourcing is possible due to the company's ability to communicate information to the company that they are hiring
• What is the benefit of outsourcing?

  • Overall saves money, especially when outsourcing is done in low income countries due to their low labour costs
• What is offshoring?


  Offshoring is the relocation of a company process abroad. Due to communication technology, easier transport and the ability to transfer money, companies use offshoring to minimise costs
• What are the specific benefits of offshoring?

  • Save money by offshoring in low income countries due to low labour costs
  • Lower taxes
  • Increase availability of materials