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Diseconomies Of Scale
In microeconomics, diseconomies of scale are the cost disadvantages that economic actors accrue due to an increase in organizational size or in output, resulting in production of goods and services at increased per-unit costs. The concept of diseconomies of scale is the opposite of economies of scale. In business, diseconomies of scale are the features that lead to an increase in average costs as a business grows beyond a certain size. Causes Communication costs Ideally, all employees of a firm would have one-on-one communication with each other so they know exactly what the other workers are doing. A firm with a single worker does not require any communication between employees. A firm with two workers requires one communication channel, directly between those two workers. A firm with three workers requires three communication channels between employees (between employees A & B, B & C, and A & C). Here is a chart of one-on-one communication channels required: The graph of al ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Actor
Economics () is the social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interactions of Agent (economics), economic agents and how economy, economies work. Microeconomics analyzes what's viewed as basic elements in the economy, including individual agents and market (economics), markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyzes the economy as a system where production, consumption, saving, and investment interact, and factors affecting it: employment of the resources of labour, capital, and land, currency inflation, economic growth, and public policies that have impact on glossary of economics, these elements. Other broad distinctions within economics include those between positive economics, desc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cannibalization (marketing)
In marketing strategy, cannibalization is a reduction in sales volume, sales revenue, or market share of one product when the same company introduces a new product. Description In e-commerce, some companies intentionally cannibalize their retail sales through lower prices on their online product offerings. More consumers than usual may buy the discounted products, especially if they'd previously been anchored to the retail prices. Even though their in-store sales might decline, the company may see overall gains. Another example of cannibalization occurs when a retailer discounts a particular product. The tendency of consumers is to buy the discounted product rather than competing products with higher prices. When the promotion event is over and prices return to normal, however, the effect will tend to disappear. This temporary change in consumer behavior can be described as cannibalization, though scholars do not normally use the phrase "cannibalization" to denote such a phenomen ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Minimum Efficient Scale
In industrial organization, the minimum efficient scale (MES) or efficient scale of production is the lowest point where the plant (or firm) can produce such that its long run average costs are minimized. It is also the point at which the firm can achieve necessary economies of scale for it to compete effectively within the market. Measurement of the MES Economies of scale refers to the cost advantage arise from increasing amount of production. Mathematically, it is a situation in which the firm can double its output for less than doubling the cost, which brings cost advantages. Usually, economies of scale can be represented in connection with a cost-production elasticity, ''Ec''. :Ec = \frac. The cost-production elasticity equation can be rewritten to express the relationship between marginal cost and average cost. : Ec = \frac = \frac = Marginal Cost(MC)/Average Cost(AC) The minimum efficient scale can be computed by equating average cost (AC) with marginal cost (MC).i.e.Ec = ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ringelmann Effect
The Ringelmann effect is the tendency for individual members of a group to become increasingly less productive as the size of their group increases.Forsyth, D. R. (2009). ''Group dynamics'' (5th ed.). Pacific Grove, CA: Brooks/Cole. This effect, discovered by French agricultural engineer Maximilien Ringelmann (1861–1931), illustrates the inverse relationship that exists between the size of a group and the magnitude of group members’ individual contribution to the completion of a task. While studying the relationship between process loss (i.e., reductions in performance effectiveness or efficiency) and group productivity, Ringelmann (1913) found that having group members work together on a task (e.g., pulling a rope) actually results in significantly less effort than when individual members are acting alone. Ringelmann discovered that as more and more people are added to a group, the group often becomes increasingly inefficient, ultimately violating the notion that group effort ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Business Processes
A business process, business method or business function is a collection of related, structured activities or tasks by people or equipment in which a specific sequence produces a service or product (serves a particular business goal) for a particular customer or customers. Business processes occur at all organizational levels and may or may not be visible to the customers. A business process may often be visualized (modeled) as a flowchart of a sequence of activities with interleaving decision points or as a process matrix of a sequence of activities with relevance rules based on data in the process. The benefits of using business processes include improved customer satisfaction and improved agility for reacting to rapid market change. Process-oriented organizations break down the barriers of structural departments and try to avoid functional silos. Overview A business process begins with a mission objective (an external event) and ends with achievement of the business object ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Unionized
A trade union (labor union in American English), often simply referred to as a union, is an organization of workers intent on "maintaining or improving the conditions of their employment", ch. I such as attaining better wages and benefits (such as holiday, health care, and retirement), improving working conditions, improving safety standards, establishing complaint procedures, developing rules governing status of employees (rules governing promotions, just-cause conditions for termination) and protecting the integrity of their trade through the increased bargaining power wielded by solidarity among workers. Trade unions typically fund their head office and legal team functions through regularly imposed fees called ''union dues''. The delegate staff of the trade union representation in the workforce are usually made up of workplace volunteers who are often appointed by members in democratic elections. The trade union, through an elected leadership and bargaining committee, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
STEM Fields
Science, technology, engineering, and mathematics (STEM) is an umbrella term used to group together the distinct but related technical disciplines of science, technology, engineering, and mathematics. The term is typically used in the context of education policy or curriculum choices in schools. It has implications for workforce development, national security concerns (as a shortage of STEM-educated citizens can reduce effectiveness in this area) and immigration policy. There is no universal agreement on which disciplines are included in STEM; in particular whether or not the ''science'' in STEM includes social sciences, such as psychology, sociology, economics, and political science. In the United States, these are typically included by organizations such as the National Science Foundation (NSF), which deals with all matters concerning science and new discoveries in science as it affects development, research, and innovations, the Department of Labor's O*Net online database for ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Anti-competitive Practices
Anti-competitive practices are business or government practices that prevent or reduce competition in a market. Antitrust laws differ among state and federal laws to ensure businesses do not engage in competitive practices that harm other, usually smaller, businesses or consumers. These laws are formed to promote healthy competition within a free market by limiting the abuse of monopoly power. Competition allows companies to compete in order for products and services to improve; promote innovation; and provide more choices for consumers. In order to obtain greater profits, some large enterprises take advantage of market power to hinder survival of new entrants. Anti-competitive behavior can undermine the efficiency and fairness of the market, leaving consumers with little choice to obtain a reasonable quality of service. Anti-competitive behaviour is used by business and governments to lessen competition within the markets so that monopolies and dominant firms can generate superno ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Microsoft
Microsoft Corporation is an American multinational technology corporation producing computer software, consumer electronics, personal computers, and related services headquartered at the Microsoft Redmond campus located in Redmond, Washington, United States. Its best-known software products are the Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2019. It is one of the Big Five American information technology companies, alongside Alphabet, Amazon, Apple, and Meta. Microsoft was founded by Bill Gates and Paul Allen on April 4, 1975, to develop and sell BASIC interpreters for the Altair 8800. It rose to do ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Polaroid Corporation
Polaroid is an American company best known for its instant film and cameras. The company was founded in 1937 by Edwin H. Land, to exploit the use of its Polaroid polarizing polymer. Land ran the company until 1981. Its peak employment was 21,000 in 1978, and its peak revenue was $3 billion in 1991. When the original Polaroid Corporation was declared bankrupt in 2001, its brand and assets were sold off. The "new" Polaroid formed as a result, itself declared bankruptcy in 2008, resulting in a further sale to Polish billionaire Wiaczesław Smołokowski. In May 2017, the brand and intellectual property of Polaroid Corporation were acquired by the largest shareholder of the Impossible Project, which had originally started out in 2008 by producing new instant films for Polaroid cameras. The Impossible Project was renamed Polaroid Originals in September 2017, [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Appeal To Tradition
Appeal to tradition (also known as ''argumentum ad antiquitatem'' or ''argumentum ad antiquitam'', appeal to antiquity, or appeal to common practice) is a claim in which a thesis is deemed correct on the basis of correlation with past or present tradition. The appeal takes the form of "this is right because we've always done it this way", and is considered by some to be a logical fallacy. The opposite of an appeal to tradition is an appeal to novelty, in which one claims that an idea is superior just because it is new. An appeal to tradition essentially makes two assumptions that may not be ''necessarily'' true: * The old way of thinking was proven correct when introduced, i.e. since the old way of thinking was prevalent, it was necessarily correct. :In reality, this may be false—the tradition might be entirely based on incorrect grounds. * The past justifications for the tradition are still valid. :In reality, the circumstances may have changed; this assumption may also ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Self-competition
{{unreferenced, date=March 2009 In business, self-competition is competition by a company with itself for customers. This can include one product or retail location competing with another. Types Product self-competition Any company which provides multiple products may suffer from product self-competition. Similar products are more likely to have this issue. For example, a bakery which offers raspberry muffins and then adds blackberry muffins will likely see a decline in sales of the original product, although the total sales of both products will likely be higher than the original single product. If total sales do not increase, then this will have a negative impact on the business. However, even if total sales do increase slightly, this may still lower profits, as producing two products increases costs over a single product. Therefore, only a large increase in total sales would justify the addition of the new product. In order to limit self-competition, new products should ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
