Question Tag: Economies of scale

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BMF – Nov 2014 – L1 – SA – Q14 – The Business Environment

Identify the factor influencing the threat of entry in Porter’s Five Forces model.

The “threat of entry” part of the Porter’s Five Forces Model is influenced by:

A. Supplier competitiveness
B. Economies of scale
C. Inflation
D. Terrorism
E. Financial Reporting Council Regulation

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BMF – Nov 2022 – L1 – SA – Q5 – The Business Environment

This question examines understanding of economies of scale.

Which of the following is NOT an example of economies of scale?
A. Generate better efficiency through larger quantities of output
B. Able to employ specialist managers to increase efficiencies
C. Able to buy and sell in retail at more optimal prices
D. Able to demand better interest rates with more assets as collateral
E. Firms clustering together to develop specialized labor force

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CSEG – May 2016 – L2 – Q6a – Organisational mission and objectives

Explain three reasons why a company should maintain its current centralized administrative department, focusing on benefits of centralization.

You are the Chief Operations Officer and a member of the board of directors of a reputable firm that has operations in all ten regions of Ghana. The board is currently deliberating on a strategy to decentralize the administrative function in order to promote flexibility in administration across all the operational areas of the company. You feel strongly that this move will be detrimental to the prospects of the company and has therefore spoken against it. The Chairman of the board has, therefore, asked you to submit a short memo to argue out your position.

Required: In a memo to the Chairman of the board, explain THREE reasons why you believe your company should maintain the current centralised administrative department. (6 marks)

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BMF – Nov 2014 – L1 – SA – Q14 – The Business Environment

Identify the factor influencing the threat of entry in Porter’s Five Forces model.

The “threat of entry” part of the Porter’s Five Forces Model is influenced by:

A. Supplier competitiveness
B. Economies of scale
C. Inflation
D. Terrorism
E. Financial Reporting Council Regulation

Login or create a free account to see answers

Find Related Questions by Tags, levels, etc.

Report an error

You're reporting an error for "BMF – Nov 2014 – L1 – SA – Q14 – The Business Environment"

BMF – Nov 2022 – L1 – SA – Q5 – The Business Environment

This question examines understanding of economies of scale.

Which of the following is NOT an example of economies of scale?
A. Generate better efficiency through larger quantities of output
B. Able to employ specialist managers to increase efficiencies
C. Able to buy and sell in retail at more optimal prices
D. Able to demand better interest rates with more assets as collateral
E. Firms clustering together to develop specialized labor force

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You're reporting an error for "BMF – Nov 2022 – L1 – SA – Q5 – The Business Environment"

CSEG – May 2016 – L2 – Q6a – Organisational mission and objectives

Explain three reasons why a company should maintain its current centralized administrative department, focusing on benefits of centralization.

You are the Chief Operations Officer and a member of the board of directors of a reputable firm that has operations in all ten regions of Ghana. The board is currently deliberating on a strategy to decentralize the administrative function in order to promote flexibility in administration across all the operational areas of the company. You feel strongly that this move will be detrimental to the prospects of the company and has therefore spoken against it. The Chairman of the board has, therefore, asked you to submit a short memo to argue out your position.

Required: In a memo to the Chairman of the board, explain THREE reasons why you believe your company should maintain the current centralised administrative department. (6 marks)

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