Large Scale

enterprise
Introduction
There are different forms of business
organizations ranging from a sole ownership to large
scale businesses that employ over a thousand
employees. Based on the scale of the business, various
classifications can be done, such as small scale
enterprises, large scale enterprises, public enterprises
and multinational corporations.
What is Large Scale Enterprise?

Large scale enterprise, are referred to as those

enterprise that are having huge infrastructure, raw
material, high manpower requirements and large capital
requirements.

Large-scale enterprises typically involve complex

operations, diverse teams, and multifaceted strategies
aimed at achieving business objectives.
Large Scale Enterprise
 Large Scale Enterprises/Industries
1. Iron and Steel Industry
2. Automobile Industry
3.Textil Industry
4.Telecommunication Industry
5. Information Technology Industry
6. Petroleum and Natural Gas Industry
7. Silk Industry
8. Paper Industry
9. Cement Industry
10 Chemical and Fertilizer Industry
 Advantages and
Disadvantages of Large-
Scale Enterprise
Advantages of Large-Scale Enterprise
1. Job Opportunities
2. Use of Machines
3. Infrastructure Development
4. Economies of Scale
5. Exportation
7. Skill and Career Development
1. Job Opportunities
Large-scale enterprises
generate employment
opportunities for people in their
location. Since they produce in-
mass, they require a large
number of skilled workforce.
2. Use of Machines
Large scale enterprises are quick to adopt new technology trends. They are
interested in investing in the latest machinery and technology that can change and
improve their business.

3. Infrastructure Development
Large scale enterprises use heavy-duty trucks and machines for mobility.
They invest in the infrastructural development of their location for ease of
operations.

You will find large-scale industries constructing better transport and

communication networks, pipe-born water, and hospitals in areas where they
operate.
4. Economies of Scale
Large scale enterprises use less capital to produce more. The cost of
each unit produced is lesser due to their ability to discounts for buying raw
materials in bulk. When the product gets to the market, the cost is less, and
more consumers can afford it.

5. Exportation
These enterprises perform transactions beyond the borders of their home
country, thus boosting the country’s foreign exchange earnings and economic
growth.

The generation of foreign currency is a norm for these enterprises. An

enterprise exporting beverages to other countries will earn more depending on
the exchange rate.
6. Easy Access to Loans
Large-scale enterprises have easy access to credit facilities at cheaper
rates because of the large fixed assets they possess. Financial institutions
approach these industries with loans at a low-interest rate.

7. Skill and Career Development

Unlike small enterprises, large-scale industries create a conducive
environment for self-development.

Employees can improve their skills and build their careers. The newly
acquired skills make them relevant in related sectors and increase their
income level as employees.
Disadvantages of Large-Scale Enterprise
1. Overproduction
2. Difficulty in Maintaining High Levels of
Efficiency
3. Non-Stop Innovation Research and
Development
4. Impact of Globalization and International
Trade
5. Inadequate Supervision
6. Monopoly
7. Reliance on Foreign Markets
1. Overproduction
Large-scale enterprises can produce more supplies than the market
can handle. This error can lead to losses in capital, raw materials, and
finished products. In addition, such activities can result in depression
through the automatic fall in prices and excess supply.

2. Difficulty in Maintaining High Levels of Efficiency

One of the major challenges facing large-scale companies is
meeting up with high levels of efficiency and keeping overhead costs at
the nearest minimum.
This situation is practically impossible without advanced
automation technologies, like robotics and artificial intelligence.
Maintaining such technologies is quite costly but effective.
3. Non-Stop Innovation Research and Development
Large-scale enterprise spend a lot of resources on research and
development. This investment is continuous. They require different
innovations and fresh ways to stay ahead of their competitors and on track
with market trends.

4. Impact of Globalization and International Trade

Globalization and international trade influence large-scale industries
in terms positively and negatively.

Adapting to different cultures during international trade can be

problematic for these industries. Additionally, competition is usually fierce
and difficult to overcome when swimming in international waters.
5. Inadequate Supervision
Large-scale enterprises may have issues paying adequate attention to every
detail in various departments due to their size and mode of operation. The
organization can incure unnecessary losses due to inadequate supervision.

6. Monopoly
Large-scale enterprises can monopolize the production of valuable goods
because of their massive size. They seamlessly achieve this feat because of the
resources available to them and their reputation.
As great as this may sound, it has adverse effects on the local economy and
small businesses. Many countries set regulations to prevent a group of companies
from monopolizing lucrative markets and to protect their local small-scale
companies.
7. Reliance on Foreign Markets
The foreign market offers many juicy opportunities
but it has its negative side. Most large-scale industries
depend on foreign markets for huge demand and supply.

The downside to this action is that the organization

may take a main hit because of wars or unfavorable
foreign policies.
Thank you 