Economies of Scale

-



Cost advantages that are reaped by businesses when production becomes efficient is known as economies of scale. Businesses achieve it by increasing the production and lowering costs as costs are spread over a large number of goods which can be both fixed and variable.

Generally, the size of the business matters when it comes to economies of scale as the larger the business is, more would be their cost savings.

Economies of scale could be internal and external where internal is based on management decisions and external ones are based on outside factors.

Considered to be an important concept for any business belonging to any industry, it represents the competitive advantages and cost savings held by larger businesses over smaller ones.

There are various reasons why economies of scale mean lower per-unit costs. Firstly, the specialisation of labour and integration of technology helps in boosting production volumes. Secondly, lower per-unit costs comes from bulk orders given by suppliers and larger advertising buys or lower cost of capital. And lastly, spreading internal function costs across more units manufactured and sold helps in reducing costs. Internal functions include information technology, accounting and marketing. Here, the first two reasons are considered as operational efficiencies and synergies. And the others are cited as benefits of mergers and acquisitions

About RCBS: The best Business (b schools) schools in Kerala, RCBS welcome you to grow your career into the next level. RCBS is popular as one of the best MBA Colleges in Kerala with AICTE and NBA accreditation which offers courses like MBA, MHRM, PGDM and International MBA. Grab your admission at one of the best b schools (business schools) in Kerala, RCBS. Visit website

Comments

Post a Comment

Popular posts from this blog

Bridge Loan

-
Image
A short term loan that is used until a person or company secures permanent financing or removes an obligation that is currently existing is called as a bridge loan. Bridge loans allow users to meet their current obligations by providing them with immediate cash flow. They are short-term loans that has relatively higher interest rates and are usually backed by a collateral like real estate or inventory. In UK, it is usually called as bridging loan, caveat loan or swing loan. They are typically more expensive than other conventional methods of financing. Also, they come with a higher rate of interest, points and other costs that are amortized over a shorter period, and various sweeteners like equity participation by lender in some loans. Bridge loans are arranged quickly in a short period of time with relatively less documentation. Bridge loans in real estate is used for quickly closing property purchases, to retrieve real estate from foreclosure or to take advantage of short-term
Read more

4 REASONS TO DO AN MBA IN KERALA INDIA

-
Image
Apart from other post-graduation courses, MBA is a distinguished degree that enables individuals to excel in their professional career path. A professional looks for several degrees to boost his career. The most common post-graduation degree in India pursued nowadays is MBA. This post-graduation course holds immense importance in the thriving market scenario. The prime aim of MBA degree is to create an entrepreneur or a professional who can manage all parameters of a business. But still many students in our country are skeptical about pursuing MBA course for several reasons. Here Are 4 Reasons To Do An MBA Program In Kerala India 1. Career Growth You may start your career mostly in an operational role. After working smartly and putting a lot of hard work you’re getting a promotion. And after that your promotion even with good work experience may limited to an extend due to academic profile. Pursuing an MBA degree can switch your career path to a much higher profile with la
Read more

SIGNIFICANCE OF PURSUING MBA IN A ROBUST ECONOMY LIKE INDIA

-
Image
An MBA degree is considered as one of the best post-graduation course across the globe is also growing by leaps and bounds in India. With several MBA colleges in Kochi Kerala India have included MBA courses in their curriculum and graduates are opting for those respected MBA courses. Many international students are also eyeing MBA courses in Kerala India giving the reputation of Business Schools situated here. There are various types of MBA courses that you can choose anyone depending on your interest and criteria. Most of the students are going for full time MBA courses right after they complete graduation degree. The Indian scenario of students thriving to MBA courses is also because that Indians are gradually started moving from an agricultural-based economy to a business and knowledge-based economy. Several types of careers are benefited by MBA courses as it helps to increase the knowledge about the market and business world and adds a handsome pay package. In a recent
Read more