This is a complete lesson written by Sarah Hilton for Revisionstation and it covers the following topics:
Understand the methods used by businesses when expanding
Organic growth through franchising
Opening new stores
Expanding through e-commerce
Outsourcing
External growth though mergers and takeovers
Discuss the benefits of expansion
Unit cost advantages due to economies of scale
Discuss the drawbacks of expansion
Diseconomies of scale
Understand the meaning of purchasing and technical economies of scale
Understand that with growth businesses increase the risk of diseconomies of scale occurring
Due to poor communication
Coordination issues
Reduced staff motivation
Calculate and interpret average unit costs
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