[COMM 210] - Final Exam Guide - Everything you need to know! (25 pages long)
30 Mar 2017
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Document Summary
Successful firms capitalize on economies of scale & scope, create management structures and invest in research & development. Business ownership patterns have diminished the likelihood of many firms" long-term success. Economies of scale: cost per unit drops as the volume of output rises. Economies of scope: large plants can use many of the same materials and processes to make a variety of different products. First movers: those who made large investments in management, production and distribution and were the first"s ones to occupy a market/industry and gained advantage. Management hierarchy/organizational structure: companies in which operating and investment decisions are made by a hierarchy of managers. Research & development: the use of resources to seek new information and to use that information in inventing new product, processes, services . Geographic and product market expansion: based on related diversification. Diversification: moving into new markets, industries or productions . Unrelated diversification: get into something that has nothing to do with your business.
