Business Studies Unit 2 + 3

Anyone re sitting unit 2 & 3?? can we send each other notes as I am desperate to get at least C in business studies.I'm not tlling wat I got as it was pretty bad!!!!

Reply 41

NatalieWroth

Ahhh I am so terrified about Unit 2 now!

Economies of Scale- what are they?!
I've never understood how to explain this..!?

Reply 42

_eeyore_is_a_donkey_

i juz copied this from another post it may help u..

Economies of Scale
Kn
EOS - When a business benefits from growing in size
DOS- When a business gains disadvantages from growing in size

Ap
The factor had become more capital intensive
More technically sophisticated products were being produced
New contracts and bigger suppliers, the business was benefitting from being able to operate on a bigger scale.

An
There are a number of factors that have come from Campus Computer LTD growing in size.

As said in the case study they have benefitted from being capital intensive as the supply of there products and services can meet with the demand (an issue in previous pages). This is classed as a technical economy of scale, as a result of the technical economy of scale the company can invest in better more up to date equipment which will result in better quality products, leading to better customer satisfaction. As well as the ability to use lean production (the reduction of waste) because capital intensive production makes very little mistakes, this in turn will reducing costs and increasing profit.

As a business grows there is also more influence with both branding and there negotiation power (porters competitive forces). Because the business is larger and has more customers the branding of the business will then allow products to be priced higher (as long as quality is already established) this will obviously mean higher profit. Negotiation power of suppliers looks at how cheaply/ readily available Campus Computers LTD can obtain the computer parts as well as stock. As the business becomes larger the negotiation power will usually increase; this will result in lower costs, more selection of products and higher profit. It can also stimulate customer satisfaction because customers will have a larger selection of products (the business is more flexible).

However there are diseconomies of scale that can result in a business gaining disadvantages from growing.

As there organizational structure has a lot of layers communication can become a problem. With more layers information can be changed (by fault) which will result in mistakes being made further up the hierarchal structure, these mistakes could be very costly for the business especially if financial decisions are being made. Poor communication can also result in decisions and change taken longer than normal, this is because it will usually have to go up through the layers of the hierarchy, a flatter structure will eliminate this. As a result of poor communication more time will be needed, and time will equal money as the opportunity cost of a manager spending along time on a small decision is the fact that they could be making a more important decision that will make the business more revenue. More time will also be taken up from reviewing employees work and can also create a “them and us” culture within the business, which will alienate the employees and could create lower efficiency and poorer quality.

Reply 43

NatalieWroth

Yes, that does help quite a bit thanks!

Reply 44

blondie_lauren

9

haha i'm sad. am i the only one retaking business studies to get a higher A?
i ended up with

Unit 1-A
Unit 2- A
Unit 3- B

wanted to/was forced into retaking unit 3 to push my A higher. i am sad i know. next tuesday.... and campus computers is the saddest thing i'v ever read. apart from Mobeen

did anyone get the disc from tutor to you? is it bad how i got an A in BS and don't even know the difference between each unit? i didnt even know which one i was retaking til today, and i still only know its called "unit 3"
im stupid ha :-)

Reply 45

mr_Cricket

1

blondie_lauren

haha i'm sad. am i the only one retaking business studies to get a higher A?
i ended up with

Unit 1-A
Unit 2- A
Unit 3- B

wanted to/was forced into retaking unit 3 to push my A higher. i am sad i know. next tuesday.... and campus computers is the saddest thing i'v ever read. apart from Mobeen

did anyone get the disc from tutor to you? is it bad how i got an A in BS and don't even know the difference between each unit? i didnt even know which one i was retaking til today, and i still only know its called "unit 3"
im stupid ha :-)

No your not the only one, if you had read what i wrote u would know this! lol
i got
unit 1 A= 90%
unit 2 E= 36/90
Unit 3A= 90%

:yep:

Reply 46

deamer44

haha, that economies of scale post was mine :biggrin:

! im retaking to hopefully get an a also :P
Unit 1 - 81/90
Unit 2 - 36/90
Unit 3 - 90/120

DAM UNIT 2 DAM IT! :angry:

Reply 47

mr_Cricket

1

deamer44

haha, that economies of scale post was mine :biggrin:

! im retaking to hopefully get an a also :P
Unit 1 - 81/90
Unit 2 - 36/90
Unit 3 - 90/120

DAM UNIT 2 DAM IT! :angry:

lol what happened to us in unit 2!!!!!,

Reply 48

deamer44

i think it was because i talked about motivation theory too much :frown:

. it messed up most of the people in my school :angry:

Reply 49

mr_Cricket

1

deamer44

i think it was because i talked about motivation theory too much :frown:

. it messed up most of the people in my school :angry:

lol we got identical marks pretty much, apart from unit 3.
Unit 2 was marked poorly as well .. i had it sent back, and they didnt give me marks that they could well have done tbh. :eyeball:

, lol
lets hope we do better on tuesday :smile:

,
how are you finding the case study?
applying your answers to it? easy?? .
theres many interesting things in it,
demand is a problem, it says that demand increased due to clever marketting, but then they say it fell because of customer complaints, it would have been easier if it was 1 or the other.