Zusammenfassung der Ressource
A2 Micro Business Growth
- Motives
- Economies of scale
- Restrict competition
- Spread risk
- Why big firms exist
- Economies of scale
- High minimum efficient scale (MES)
- High barriers to entry
- Legal
- Physical
- Sunk costs
- Principle-agent problem
- Owners (shareholders)
- Long term profits
- Managers (Board of directors)
- Short term sales
- High risk
- Collapse of Lehmen Brothers
- Methods
- Organic
- Retained profit
- Inorganic
- Horizontal merger
- Backwards vertical integration
- Forwards vertical
- Conglomerate
- Tata
- Constraints
- Access to funds
- Size of market
- Owner objectives
- Satisficing
- Regulation