Examples of economies of scope in the following topics:
-
- This definition underscores why it is important for companies to identify the factors of the organization that determine its ideal structure—most specifically the size, scope, and operational initiatives of the company.
- Companies may adopt one of six organizational structures based upon company size and diversity of scope of operations.
- This structure works well for large organizations pursuing economies of scale, usually through production of a large quantity of homogeneous goods at the lowest possible cost and highest possible speed.
- A divisional structure is also a framework best leveraged by larger companies; instead of economies of scale, however, they are in pursuit of economies of scope.
- Economies of scope simply means a high variance in product or service.
-
- The logic driving consolidation is the creation of economies of scale, economies of scope, new locations, new technology, or some other form of increased competitive capacity.
- This kind of action is more precisely referred to as a "merger of equals."
- The classic example of consolidation is the merger of Bell Atlantic with GTE, out of which resulted Verizon Communications.
- The following motives are considered to improve financial performance: economy of scale, economy of scope, increased revenue or market share, cross-selling, synergy, taxation, geographical or other diversification, resource transfer, vertical integration, and hiring.
- "Meta-analyses of Post-acquisition Performance: Indications of Unidentified Moderators."
-
- By expanding to a broader consumer base, these firms can take advantage of scale economies (cost advantages that an enterprise obtains due to expansion) and learning-curve effects because they are able to mass-produce a standard product that can be exported (providing that demand is greater than the costs involved).
- Differentiation strategies also enable economies of scope, either fulfilling different needs in different markets with a similar series of products, or developing new products based upon the needs and consumption habits of a new market.
- For example, Coca Cola tastes different depending on the country where it is bought because of differences in local preferences.
- Starbucks sources coffee beans from all over the world, as climate dramatically affects the type and quality of the bean.
- Explain the concept of global strategy within the context of international business and a globalized economy
-
- Measuring performance is a vital part of assessing the value of employee and management activities.
- Some are included as part of enterprise systems and some are standalone programs.
- Developing performance metrics usually follows a process of:
- Outcomes should be directly related to the public purpose of the organization.
- Growth - Raw revenue growth is also important, as it indicates expansion and potential economies of scale and scope.
-
- These three strategies are defined along two dimensions: strategic scope and strategic strength.
- Strategic scope is a demand-side dimension and considers the size and composition of the market the business intends to target.
- He originally ranked each of the three dimensions (level of differentiation, relative product cost, and scope of target market) as either low, medium, or high and juxtaposed them in a three-dimensional matrix.
- Cost leadership pertains to a firm's ability to create economies of scale though extremely efficient operations that produce a large volume.
- Market segmentation is narrow in scope (both cost leadership and differentiation are relatively broad in scope) and is a cross between the two strategies.
-
- MNEs (multinational enterprises) may employ a more structured strategic management model due to its size, scope of operations, and need to encompass stakeholder views and requirements.
- From a strategic point of view, this involves creating a system of quality control, reporting, and localization that maintains the competitive advantage of scale economies and strong branding.
- Large firms such as McDonald's often achieve better scale economies and thus can pursue low-cost strategies.
- SMEs (small and medium enterprises) may employ an entrepreneurial approach due to its comparatively smaller size and scope of operations and limited access to resources.
- In most cases, low-cost strategies require substantial economies of scale.
-
- Top-level managers work at the top of organizations and guide strategy and planning.
- In general, this level of management is concerned with administrative functions that affect all aspects of the organization.
- Kleiman, to operate successfully at the top managerial level, managers should have a broad understanding of how competition, world economies, politics, and social trends affect organizational effectiveness.
- Chief Operating Officer (COO) – The COO is often referred to as the senior vice president, as the scope of the role encompasses most (if not all) aspects of a given organization's operations.
- Chief Information Officer (CIO) – Sometimes referred to as the CTO (Chief Technology Officer), the CIO takes a top-down view of the technological integration of company operations and the flow of communication.
-
- The idea behind the blue ocean strategic perspective is that competing in a red ocean (an already established market place, likely with companies with economies of scale), is not a rational option for investment.
- In this case, winning market share is a zero sum game, where the gains of one company are a direct loss of another.
- From a macroeconomic perspective this is of limited value, as wealth generation is only ever an unlikely byproduct of competition and redistribution (if it happens at all).
- It is based on the principle that strategic management could extend it's scope beyond competition.
- An excellent overview of the components of blue ocean strategy, particularly highlighting the trajectory of differentiation
-
- Groups can range greatly in size and scope.
- Degree of interdependence: Team members are interdependent since they bring to bear a set of resources to produce a common outcome.
- Groups can exist as a matter of fact; for example, a group can be comprised of people of the same race or ethnic background.
- Degree of formal structure: Team members' individual roles and duties are specified and their ways of working together are defined.
- The activity scope and duration is just too small to involve the amount of coordination of resources and effort that teamwork requires.
-
- A self-managing team is a group of employees working together who are accountable for all or most aspects of their task.
- A self-managing team is a group of employees working together who are accountable for most or all aspects of their task.
- While the latter define their own goals, the scope of a self-managing team's authority is limited by goals that are established by others.
- Because they eliminate a level of management, the use of self-managing teams can better allocate resources and even lower costs.
- Members of a self-managing team often need training to assist them in succeeding at jobs that have a broad scope of duties.