Exercise – Small vs Large
Businesses come in all shapes and sizes. For example:
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A vast number of sole proprietors only supply a limited number of
products
Airbus and Boeing manufacture aircraft for airline companies only
Ferrari and Rolex supply luxury goods to a small consumer market
Ford, GM and Toyota mass produce their cars
Burger King, KFC and McDonalds have outlets throughout the world
Nokia, Motorola, Samsung and Sony collectively produce billions of
mobile phones
Microsoft supplies computer software for over 95% of the personal
computers on the planet
Some of these businesses prefer to stay small. Airbus and Ferrari deliberately limit
growth in their operations. Others, such as McDonalds and Toyota, continually strive for
expansion.
a.
b.
c.
d.
Explain the circumstances when economies of scale might not actually benefit
customers.
Explain why economies of scale might be inappropriate, undesirable or
inaccessible for certain businesses.
If economies of scale are so important, examine the reasons why so many
small firms continue to survive and thrive.
To what extent do large businesses operate in the best interest of the general
public?
Part B.
Choose any company listed above and complete a SWOT and PEST analysis on them.
You will have to check the company website, review recent news articles on the company
and perhaps use your own personal information.