Examples of minimum efficient scale in the following topics:
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- Industrial firms focused on production orientation models that exploited economies of scale to reach maximum efficiency at the lowest cost.
- Economies of scale posits that by driving efficiency, companies (particularly production-oriented organizations) will realize significant cost advantages as they expand operations.
- In theory, such organizations can ramp up production until the minimum efficient scale is reached.
- Some common sources of economies of scale include:
- Technological - taking advantage of returns to scale in the production function
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- Countries engage in international trade to focus on producing goods most efficiently and to achieve economies of scale in production.
- Nations can benefit from their differences by reaching agreements in which each party contributes its strengths and focuses on producing goods efficiently.
- Second, countries trade to achieve economies of scale in production.
- If each country produces only a limited range of goods, it can produce each of these goods at a larger scale and hence more efficiently than if it tried to produce everything.
- Proposed and practiced fair trade policies vary widely, ranging from the common prohibition of goods made using slave labor, to minimum price support schemes such as those for coffee in the 1980s.
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- The amount of competition being realized at that point was unprecedented, and the scale of consumerism was rising.
- Effective selling requires a systems approach, at minimum involving roles that sell, enable selling, and develop sales capabilities.
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- In order for marketing KPIs to be integrated within the business and management of the enterprise, and ensure consistency and reliability across the marketing mix, they must meet these minimum requirements:
- To ensure meaningful comparisons among activities, brands, markets, and time periods, organizations may employ a common scale to analyze performance metrics.
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- Price discrimination's effects on social efficiency are unclear; typically such behavior leads to lower prices for some consumers and higher prices for others.
- Output can be expanded when price discrimination is very efficient, but output can decline when discrimination is more effective at extracting surplus from high-valued users than expanding sales to low valued users.
- Even if output remains constant, price discrimination can reduce efficiency by misallocating output among consumers.
- Airlines accomplish this by imposing advance ticketing requirements or minimum stay requirements conditions that would be difficult for average business traveler to meet .
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- Sales operations are a set of business activities and processes that help a sales organization run effectively, efficiently, and in support of business strategies and objectives.
- A sales quota is the minimum sales goal for a set time span.
- A sales quota may be minimum amount of dollars (monetary value) or product sold (volume).
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- Marketing orientation is a business model that focuses on delivering products designed according to customer desires, needs, and requirements, in addition to product functionality and production efficiency (i.e., production orientation).
- From the beginning of the Industrial Revolution until the 1950s, companies focused on maximizing economies of scale and minimizing production costs.
- Since high quality products were scarce during this period, brands could make products on a massive scale that were functional and durable, but ignore marketing elements such as add-on features and design.
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- Oxford University Press defines global marketing as "marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives. " The global economy certainly provides advantages to companies wanting to increase revenues and expand their brand.
- The global economy provides many advantages for companies that are able to introduce their products on a global scale, while customizing their marketing strategies for different languages, cultures, and socio-economic demographics.
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- On a smaller, but still significant scale are the numerous processes, and internal and external partners companies use to deliver marketing materials to customers and clients.
- Failing to identify efficiencies and develop best practices can increase costs, reduce service levels, and result in an overall loss of control.
- Marketing flows are often integrated into the larger supply chain of an organization to promote efficiency.
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- MNC operations often attain economies of scale, through mass producing in external markets at substantially cheaper costs, or economies of scope, through horizontal expansion into new geographic markets.
- Organizational Structure: Another significant hurdle is the ability to efficiently and effectively incorporate new regions within the value chain and corporate structure.
- There are differences in strategies and approaches in every geographic location worldwide, and attracting talented managers with high intercultural competence is a critical step in developing an efficient global strategy.