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Please answer in detail and organize it in the same order. A brief explanation is needed. Choose a company to use for this question. The
Please answer in detail and organize it in the same order. A brief explanation is needed.
- Choose a company to use for this question. The company can be a U.S. firm, or a firm from any country that is easily researchable using search engines.
- Identify the name of the firm, and then provide a brief description of the goods and/or services that the firm sells.
- Think about the six ways to achieve economies of scale and describe how to apply the following to the company in order to achieve economies of scale:
- Specialization: How can this be applied to your business specifically to achieve economies of scale?
- Division of labor: How can this be applied to your business specifically to achieve economies of scale?
- Advanced technology: How can this be applied to your business specifically to achieve economies of scale?
- Automation devices: How can this be applied to your business specifically to achieve economies of scale?
- Quantity discounts: How can this be applied to your business specifically to achieve economies of scale?
- Financial strength (credit): How can this be applied to your business specifically to achieve economies of scale?
- Other than the six ways to achieve economies of scale in #3, what other ways could managers of the company increase operational efficiencies? Decrease the law of diminishing returns?
- Applying what you have learned, if you were the manager of a large business firm that is unable to achieve economies of scale, would you recommend that the firm cease operations and close? Why or why not?
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