Economies and Diseconomies of Scale

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Year 11 Business Studies Mind Map on Economies and Diseconomies of Scale, created by AyItsLily I on 11/01/2018.
AyItsLily I
Mind Map by AyItsLily I, updated more than 1 year ago
AyItsLily I
Created by AyItsLily I almost 7 years ago
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Resource summary

Economies and Diseconomies of Scale
  1. Economies of scale...
    1. A saving in cost gained by an increased level of production (AO1)
      1. External...
        1. 1) Concentration (AO1)
          1. 2) Information (AO1)
          2. Internal...
            1. 1) Purchasing (AO1)
              1. 2) Financial (AO1)
                1. 3) Managerial (AO1)
                  1. 4) Technical (AO1)
                  2. + ASDA, Tesco bulk buying (AO2)
                    1. + Coca-Cola experiencing low advertising costs (AO2)
                    2. Diseconomies of scale...
                      1. An increase in unit costs because of an increased scale of production (AO1)
                        1. Internal...
                          1. 1) Managerial (AO1)
                            1. 2) Technical (AO1)
                              1. 3) Communication (AO1)
                                1. 4) Low morale (AO1)
                                2. External...
                                  1. 1) Pollution (AO1)
                                    1. 2) Infrastructure (AO1)
                                    2. + PepsiCo experiencing communication diseconomies (AO2)
                                      1. + Apple experiencing technical diseconomies (AO2)
                                      2. - Increase/decrease in overall costs (AO3)
                                        1. - Products being sold at more profit (AO3)
                                          1. - OR employees feeling alienated (AO3)
                                            1. - The size of the business (AO4)
                                              1. - The demand for products being sold (AO4)
                                                1. - Finances available to the business (AO4)
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