COMS 210 Lecture Notes - Lecture 1: Thomas Watson Jr., Tangled, Singer Corporation
19 Oct 2016
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Claim: the development, production, and distribution of goods for national and global markets require a wide variety of activities calling for many different facilities and skills. Only when all these activities are carefully coordinated can they be integrated in ways that reduce price, assure quality, and provide essential services. Managerial enterprise requires combining both scale and scope in order to reduce your costs. Scale: the bigger your plant is, the cheaper your cost of production because the higher the level of output, the smaller the cost of production. (bigger is better) Scope: you can use the same raw materials of one product in order to produce a different product than your original. (for example potatoes. You can make both fries and potato chips in the same plant!) Size and diversity alone is not enough in order to make a company grow.
