measuring business size
TRANSCRIPT
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Name business of different sizes:
Small
Medium
Large
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https://www.youtube.com/watch?v=Qs5eSFD8CTc
https://www.youtube.com/watch?v=lb7wkIcRtyg
https://www.youtube.com/watch?v=o2RfyGcRVcI
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Measuring business size
Capital employed
Value of output
Number of employees
Market share
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The end
Name as many ways as you can of measuring a business
What are the limitations to 'X' method of measuring a
business size?
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List and explain
Student 1... method of measuring business size Student 2... limitation of that method Student 3 etc
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Measuring the size of a business
What are the four methods:1.2.3.4.
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Which business is biggest?A B C
Revenue $ 280,000 380,000 410,000Capital employed
$ 200,000 500,000 350,000Number of employees 60 35 50
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Which business is biggest?A B C
Revenue $ 280,000 380,000 410,000Capital employed
$ 200,000 500,000 350,000Number of employees 60 35 50
They are all the biggest!!!
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What are the limitations to measuring the size of a business?
Using different meaures leads to....... so its is a good idea to use more than one...... because....
So in our example... B could be the biggest overall, despite having fewest employees.
It all depends... SO BE CAREFUL
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Why some businesses grow and others remain small
Growth is a objective of most, but not all businesses.
For example a chocolatier making specialist, hand made chocolates may want to remain small, whilst a chocolate manufacturer might want to produce chocolate for the mass market will want to grow.
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https://www.youtube.com/watch?v=MrNtVV9TAJAhttps://www.youtube.com/watch?v=j1YkNWM4nEk
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Staying smallStaying small:
1. Can maintain quality
2. Can adjust to changing customer needs
3. Maybe the market is too small to grow.
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Reasons to grow in size
Increase in profitsIncrease in market shareEconomies of scaleGreater power to control the marketProtection from risk of takeover
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Growth can be internal or externalInternal growth:Increasing the number of goods it can produceDeveloping new productsFinding new markets for their products
External growth:Horizontal integrationForward vertical integrationBackward vertical integrationConglomerate integration
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Air India case study p37
Air India is trying to achieve internal growth in these two ways...
Air India could ….. in order to achieve its growth objective, because...
I think Air India will achieve its plans for growth because...
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Activity 3.3 p.381. Copy the table2. The main advantage to a fruit canning
factory of backwards vertical integration is..., I believe this to be so because....
3. The main advantage of conglomerate integration is...
4. An overseas holiday business integrating with a travel agency brings the following benefits...
5. Large and small car manufacturers integration brings the following advantages..
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https://www.youtube.com/watch?v=dGO1oEwxYWA
Willie's Cacao