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A company can effectively achieve economies of scale in its operations by increasing production levels to spread fixed costs over a larger output, negotiating lower prices with suppliers due to higher purchasing volumes, and improving efficiency through specialization and automation.
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What factors contribute to a company achieving the minimum average total cost in the long run?
In the long run, a company can achieve the minimum average total cost by optimizing production processes, reducing input costs, increasing efficiency, and achieving economies of scale.
What strategies can a company implement to achieve a good profitability ratio?
To achieve a good profitability ratio, a company can implement strategies such as reducing costs, increasing sales revenue, improving operational efficiency, optimizing pricing strategies, and managing cash flow effectively. By focusing on these areas, a company can enhance its profitability and financial performance.
What is a large company's ability to take advantage of economies of scale?
The company can offer goods more cheaply than smaller retailers
Which of the following results from a large company's ability to take advantage of economies of a scale?
The company can offer goods more cheaply than smaller retailers.
What global factors do companies use to move their company to Mexico?
Lower transportation costs, economies of scale and lower wages qualify as such.
What does a holding company allow?
A holding company allows a corporation to achieve economies of scale as well as geographic or market diversification
What is relative cost position?
Relative cost position refers to a company's position in terms of cost efficiency compared to its competitors in the same industry. It is important for businesses to have a lower cost position to remain competitive and achieve higher profitability. Improving relative cost position can be achieved through controlling expenses, optimizing operations, and leveraging economies of scale.
What statement summarizes the results of the company's operations?
The income statement summarizes the results of the company's operations.
What is meant by a global company?
a company that operates in almost of the world's economies ie. McDonalds
What is establish system?
Establish system refers to the process of setting up or creating a system within an organization, company, or project. This involves defining the structure, rules, processes, and procedures necessary to achieve specific goals or objectives effectively. It is essential for ensuring efficiency, consistency, and success in operations.
What factors contribute to a company achieving the minimum average total cost in the long run?
In the long run, a company can achieve the minimum average total cost by optimizing production processes, reducing input costs, increasing efficiency, and achieving economies of scale.
What is organisational synergy?
Operations must work together in order for a company to succeed. Organizational synergy will be created when all departments are cooperating together to achieve corporate objectives.
Pros and cons of horizontal merger?
Increases economies of scale and should lead to an improved mix of skilled people. Could broader both the product line and the distribution network. Creates cultural conflicts and frequently interpersonal conflicts (Blue team vs. Red team). Creates extra management layers and other dis-economies of scale. Significant costs are incurred to achieve economies of scale (converting to a singel set of systems, for example). Customers of Company ABC may hate Company XYZ and leave the merged company to go to another supplier.
What did Trent Barton achieve in his career?
Trent Barton is an independent bus company located in the United Kingdom. The company was formed as the result of merging Derbyshire's Trent Buses with all of the bus operations of Notthinghamshire's Barton Transport.
What strategies can a company implement to achieve a good profitability ratio?
To achieve a good profitability ratio, a company can implement strategies such as reducing costs, increasing sales revenue, improving operational efficiency, optimizing pricing strategies, and managing cash flow effectively. By focusing on these areas, a company can enhance its profitability and financial performance.
What is a multi domestic company?
A company with international operations that allows operations in one country to be relatively independent of those in another.
What is a multi-domestic company?
A company with international operations that allows operations in one country to be relatively independent of those in another.
