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    Growth of Firms: Department of Economics and Business DCS

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    Myat Zar Gyi
    The document discusses the growth of firms and reasons they may choose to increase in size and scale of operations. It notes that growth can help firms aid survival, reduce risk, gain economies of scale to reduce costs, increase future profitability, and gain or maintain market share. Additionally, growth can increase feelings of status and power for management and provide greater security and remuneration. However, the choice of operational scale is affected by factors like the objectives of owners, size of the market, availability of workforce and finance, technological development, and government policies.

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    Growth of Firms: Department of Economics and Business DCS

    Uploaded by

    Myat Zar Gyi
    15 views5 pages
    The document discusses the growth of firms and reasons they may choose to increase in size and scale of operations. It notes that growth can help firms aid survival, reduce risk, gain economies of scale to reduce costs, increase future profitability, and gain or maintain market share. Additionally, growth can increase feelings of status and power for management and provide greater security and remuneration. However, the choice of operational scale is affected by factors like the objectives of owners, size of the market, availability of workforce and finance, technological development, and government policies.

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    Size of Firms

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    sizeoffirmsandgrowth-120226013244-phpapp02

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    The document discusses the growth of firms and reasons they may choose to increase in size and scale of operations. It notes that growth can help firms aid survival, reduce risk, gain economies of scale to reduce costs, increase future profitability, and gain or maintain market share. Additionally, growth can increase feelings of status and power for management and provide greater security and remuneration. However, the choice of operational scale is affected by factors like the objectives of owners, size of the market, availability of workforce and finance, technological development, and government policies.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    15 views5 pages

    Growth of Firms: Department of Economics and Business DCS

    Uploaded by

    Myat Zar Gyi
    The document discusses the growth of firms and reasons they may choose to increase in size and scale of operations. It notes that growth can help firms aid survival, reduce risk, gain economies of scale to reduce costs, increase future profitability, and gain or maintain market share. Additionally, growth can increase feelings of status and power for management and provide greater security and remuneration. However, the choice of operational scale is affected by factors like the objectives of owners, size of the market, availability of workforce and finance, technological development, and government policies.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 5

    Growth of Firms

    Department of Economics and


    Business DCS

    Introduction

    Many businesses believe


    efficiency can be improved
    by increasing the size and
    scale of operations.

    Introduction
    Reasons for (and benefits of) Growth

    Aid survival
    Reduce risk
    Gain economies of
    scale / Reduce costs
    Increase future profitability
    Gain (or maintain) market
    share

    Introduction
    Reasons for (and benefits of) Growth

    Increase feeling of status and power


    for management etc
    Provide greater security and
    remuneration

    Introduction
    Factors Affecting Choice of Operational Scale

    Objectives of owners etc.


    Size of Market.
    Availability of workforce.
    Availability of finance.
    Technological development.
    Government policies (Monopolies
    etc)
    So Why do some firms remain
    small?

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