Business organisation and environment

Table of Contents

1. Topic pack - introduction
2. 1.1 Nature of business activity - notes
3. 1.1 Nature of business activity - questions
4. 1.2 Types of organisation - notes
5. 1.2 Types of organisation - questions
6. 1.3 Organisational objectives - notes
7. 1.3 Organisational objectives - questions
8. 1.4 Stakeholders - notes
9. 1.4 Stakeholders - questions
10. 1.5 External environment - notes
11. 1.5 External environment - questions
12. 1.5 External environment - simulations and activities
13. 1.6 Organisational planning tools - notes
14. 1.6 Growth and evolution - notes
    1. Economies and diseconomies of scale
    2. Types of economy of scale
    3. Internal and external economies and diseconomies of scale
    4. Economies and diseconomies of scale - examples
    5. Small versus Large Organisations
    6. Internal and external growth
    7. Internal growth
    8. External growth
    9. Joint Venture and Strategic Alliance
    10. Mergers and takeovers
    11. Porter's generic strategies
    12. Franchises
    13. Ansoff matrix
15. 1.7 Growth and evolution - questions
16. 1.7 Growth and evolution - simulations and activities
17. 1.6 Change (HL only) - notes
18. 1.9 Globalisation - notes
19. 1.9 Globalisation - questions
20. Print View

Internal and external economies and diseconomies of scale

External economies of scale are those that benefit the industry as a whole, especially as the industry grows. An example would be the concentration of industry, and the availability of specialised training, supply and maintenance services.

External diseconomies occur when this concentration becomes excessive. Everything is then in short supply. To check your understanding try the following two questions: