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Pursuing Strategies
Growth and Retrenchment
Diseconomies of Scale
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Created by
Lukas Skripka
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Cards (3)
What is diseconomies of scale?
When a business experiences increasing average
unit costs
as it increases its
production
scale
How does diseconomies of scale occur?
When a company grows too
large
, leading to
inefficiencies
and decreased
productivity
What factors can cause diseconomies of scale?
Inefficienct
communication
Decreased
motivation
Too complex
organisational structure