COMM 305 Study Guide - Final Guide: Balanced Scorecard, Inventory Turnover, Job Enrichment
Document Summary
Major claim: big firms are essential for industrial success [but, a firm shouldn"t be so big us to go into unrelated diversification) Successful firms are the ones that first capitalized on economies of scale and scope, create management structures and invest in research and development which allows them to stay ahead of the competition. Once a firm loses the opportunity to be a first mover, it is difficult to regain competitive bondage. The more you produce, the lower the cost. Doing things on a greater scale makes things cheaper. Economies of scope: companies can use the same raw materials and intermediate production process to make a wider range of products. First movers good design wasn"t really available pg. 92. The finer things in life weren"t available to most of us forbes made it available to the public- launched business in 1999. Vertical expansion: becoming their own designers, opening stores added 63 stores in 2002-
