What's it: Business expansion is the attempt of a company to grow the size of its business. It aims to increase the scale of operations. Thus, the company can generate more money. Expansion can be through internal growth such
Business Growth
Diseconomies of Scale: Types, and Causes
What's it: Diseconomies of scale are the economic disadvantages when a firm increases its production. Instead of lowering average costs, increasing output results in higher average costs. It usually occurs when the company has reached
Economies of Scale: Types, Benefits, How to Achieve It
What it is: Economies of scale are the cost savings when a company increases its production scale. An increase in output allows the firm to reap a decreasing average cost of production. Production becomes more efficient because the
Economies of Scope: Meaning, Formula, and How to Calculate
What's it: Economies of scope is a reduction in the unit cost of production when companies produce two or more products using the same production facilities or resources. The example is more or less like this. Automakers use one
External Growth: Types, Advantages, and Disadvantages
What it is: External growth refers to the expansion of business by relying on the synergy of internal and external resources and capabilities. The most common strategies are mergers and acquisitions. Alternatively, the company can also
Business Growth: Types, Importance
What it is: Business growth is part of a management target. By growing, companies can make more money for their shareholders. Growth is also essential for competitiveness. In competition, larger businesses are one step ahead of
Business Size: Definition, Measurement, Classification
What's it: Business size is about how big the company's operations are. It can be measured by several indicators, including assets, revenue, production, market capitalization, number of employees, and capital invested. Business size