measuring business size
TRANSCRIPT
Name business of different sizes:
Small
Medium
Large
https://www.youtube.com/watch?v=Qs5eSFD8CTc
https://www.youtube.com/watch?v=lb7wkIcRtyg
https://www.youtube.com/watch?v=o2RfyGcRVcI
Measuring business size
Capital employed
Value of output
Number of employees
Market share
The end
Name as many ways as you can of measuring a business
What are the limitations to 'X' method of measuring a
business size?
List and explain
Student 1... method of measuring business size Student 2... limitation of that method Student 3 etc
Measuring the size of a business
What are the four methods:1.2.3.4.
Which business is biggest?A B C
Revenue $ 280,000 380,000 410,000Capital employed
$ 200,000 500,000 350,000Number of employees 60 35 50
Which business is biggest?A B C
Revenue $ 280,000 380,000 410,000Capital employed
$ 200,000 500,000 350,000Number of employees 60 35 50
They are all the biggest!!!
What are the limitations to measuring the size of a business?
Using different meaures leads to....... so its is a good idea to use more than one...... because....
So in our example... B could be the biggest overall, despite having fewest employees.
It all depends... SO BE CAREFUL
Why some businesses grow and others remain small
Growth is a objective of most, but not all businesses.
For example a chocolatier making specialist, hand made chocolates may want to remain small, whilst a chocolate manufacturer might want to produce chocolate for the mass market will want to grow.
https://www.youtube.com/watch?v=MrNtVV9TAJAhttps://www.youtube.com/watch?v=j1YkNWM4nEk
Staying smallStaying small:
1. Can maintain quality
2. Can adjust to changing customer needs
3. Maybe the market is too small to grow.
Reasons to grow in size
Increase in profitsIncrease in market shareEconomies of scaleGreater power to control the marketProtection from risk of takeover
Growth can be internal or externalInternal growth:Increasing the number of goods it can produceDeveloping new productsFinding new markets for their products
External growth:Horizontal integrationForward vertical integrationBackward vertical integrationConglomerate integration
Air India case study p37
Air India is trying to achieve internal growth in these two ways...
Air India could ….. in order to achieve its growth objective, because...
I think Air India will achieve its plans for growth because...
Activity 3.3 p.381. Copy the table2. The main advantage to a fruit canning
factory of backwards vertical integration is..., I believe this to be so because....
3. The main advantage of conglomerate integration is...
4. An overseas holiday business integrating with a travel agency brings the following benefits...
5. Large and small car manufacturers integration brings the following advantages..
https://www.youtube.com/watch?v=dGO1oEwxYWA
Willie's Cacao