Economies of Scale Essay Example | Topics and Well Written Essays - 2500 words

Economies of Scale - Essay Example This concept is popularly known as 'Economies of Scale'. Many firms in different sectors of the economy are experiencing the economies of scale by virtue of expanding their economic activities to a greater level. The economies of scale may be internal or external. Internal economies of scale are experienced within the same firm while external economies of scale are experienced in the same industry. In this paper the internal economies of scale are discussed in detail in the Section-I. Subsequently disadvantages of the economies of scale for a firm as well as for the consumers of the firms experiencing economies of scale are described in the section-II and III. Finally the implications of the regulatory authorities on the concept of 'minimum efficient scale' has been described in section-IV. If the average cost per unit of input falls per unit increase in the output, then the firm is said to be enjoying the internal economies of scale. This in other words it can be expressed as a percentage change in all inputs leads to a greater percentage change in outputs. Here average total cost (ATC) first decreases because fixed cost such as buildings, equipments and management expenses remains constant and have been utilized to their optimum. The total cost is spread over a greater range of outputs. This increasing returns to scale is achieved till an optimum level after which any increase in the quantity of input, the average total cost(ATC) increases showing the diseconomies of scale. Firms which generally require large capital investments show economies of scale. This internal economies of scale is of five types, such as technical, commercial, managerial, financial and risk bearing economies. The pattern of the economies of scale is shown in the figure- 1. Figure-1: Various types of economies of scale (Source: http://www.bized.co.uk/educators/16-19/economics/firms/presentation/scale_map.htm ) There are various factors as shown in the figure-1 contributes to different economies of scale. Each factor has got significance for reduction in average cost of production thus making the output cheaper. Technical: Technical economies are when improved techniques benefits a firm to increase its production to a large extent. "Businesses with large scale production can use more advanced machinery (or use existing machinery more efficiently). This may include using mass production techniques, which are more efficient form of production" ( tutor2u.net). This technical economies of scale is achieved due to several factors, such as: Indivisibility of Plant:- Due to imperfect divisibility of factors the economies of scale occur and the long-run average cost falls because of this indivisibility of factors (Kaldor & Robinson, cited by Ahuza, 2004). In this case most of the factors are 'lumpy' i.e. they are available in large indivisible units which can therefore yield lower cost of production when they are used to produce a large output. Here example can be given of telecommunication industry where the initial investment in infrastructure is too high. So by increasing a larger clientele base only the fixed cost can be spread over and increasing return to scale may be seen. Likewise another example is radio-dispatching technology used by the police officers. The cost of installing the technology is about the same no

Dances with the Wolves by Michael Blake Essay Example | Topics and Well Written Essays - 750 words

Dances with the Wolves by Michael Blake - Essay Example At the outset, the reader is given a glimpse of the character of the protagonist. When, in an attempt to commit suicide, Dunbar rides his horse into battle, he has the courage to face death head on and to stand his ground on the battle field. 1863. The war is at a deadlock. Soldiers, exhausted, are taking a momentary respite from the hard day of battle. Lieutenant Dunbar, gains consciousness, to find himself on the operating table with severe injuries, next in line to have his leg amputated. Dunbar shows immense courage when he decides to put on his boots and stumble back to the battlefield. He feels disillusioned, frustrated and helpless. â€Å"He had raised his arms in a final gesture of farewell to this life†¦. He had only wanted to die.†1 However, fate and his skill with a horse ensure that he twists and weaves through the enemy lines unscathed. He holds his ground on the battlefield and charges upon line after line of confederate soldiers. Upon seeing this, the moral e of the union army is boosted and they charge the field resulting in victory. Dunbar is branded a hero and decorated. Arriving at Fort Sedgewick, a deserted outpost, near Indian country, Dunbar showed courage, bravery, and a strong sense of duty by choosing to remain when many would have turned back. Dunbar as a reward chose to be posted at the western frontier. ... He forgot that he was completely naked; neither clothes nor a weapon to protect him, he bellowed at the enemy.2 When he met the rest of the natives (Wind in His Hair) too, he rushed forward fearlessly without any regard to his safety3 or any danger to his life thereby earning the respect of the Sioux tribe. He was surrounded by the Sioux tribe where he was putting up. The tribe tried to intimidate him by attempting to steal his horse and scare. To this Dunbar thought that he needs to have a dialogue with the tribe and sets out to see them, and in the way comes across a tribal woman who was injured. He took her to her tribal house, and in the amazement of everyone around they changed their perception about him and welcomed him. After having praised the tribe with his deeds he starts to live with the tribe on a permanent basis. He begins to build a rapport with the tribe and slowly engages himself in the culture of the tribe. He really appreciates the way the tribe is living and falls in love with the whole way of living which involves simplicity and humility unseen in those days in America. He becomes hero within the tribe when he locates a migrating herd of Buffalo and participates in the hunt. He is given the status of an honoured guest in the tribe and the people love him for helping them hunt the herd of Buffalo for their hunger needs. While at his stay in the tribe, he falls in love with Stands with a Fist and gets the approval of her father to marry her, and while doing so he abandons his fort for ever. He is given the name â€Å"Dances with Wolves† when he was chasing Two Socks and the Sioux were observing his move while he was through the act of

Role of Compromise in Delaying the Civil War Essay

Role of Compromise in Delaying the Civil War - Essay Example This research will begin with the statement that the period before the American civil war of 1861-1865 was one of the politically dramatic periods in American history. This essay discusses that compromise played a big role in delaying the civil war until 1861. The compromise of 1850 consisted of five bills processed by Clay and advocated by Douglas. This paper illustrates that the bill made it possible for Texas to withdraw its war claim to New Mexico. States such as Washington D.C agreed to ban of slave trade whereas others such as national capital retained slave trade. Additionally, other states allowed California to be a free state. The author has rightly presented that the ideas of popular sovereignty sought to manifest sovereign powers to the people by allowing them to have free will in determining their political and societal discourse. The paper tells that this was most evident in Kansas-Nebraska act. Douglas advocated for democracy and free will among the people. Different st ates were able to make their own independent decisions regarding an important issue such as the constitution. This helped delay the civil war appreciably. This essay discusses that Missouri compromise aimed at finding a consensus between pro and anti-slavery factions. House of Representatives eased their stand on the issue. According to the research findings, Missouri was allowed to make their own constitution in which they sought to forbid slave trade.

Decision in paradise part II Case Study Example | Topics and Well Written Essays - 1000 words

Decision in paradise part II - Case Study Example The People of Kava settle down but within a short while, they are quickly disoriented by yet another catastrophe that they all too well expected to happen. Our company is here to improve the well being of the people of Kava. The already established company intends to change the island a found paradise. It is so lost in a series of confusing and intertwined events to realize that it is a have by itself. The majority of Kava Island's population is aged 15 years and below. It is a culturally diverse island with a combination of people with 50% coming from indigenous tribes, French, Americans, Africans, and Spanish. The people of Kava are basically of indigenous belief. As a matter of, 50% of the people have an indigenous faith while the rest is a mixture of English, French and Spanish. The main economic activity is farming of spices, cocoa bananas and coffee. They also are involved in extraction of petroleum. The company will step by step take full advantage of these terrible disasters in Kava and turn them into opportunities. Whatever it is that we have to do however must be beneficial to both our company and the population of kava. After all, that's what intelligent business people do. As on employee of this company, I will have to adopt a decision making model that will help me turning this around. The main source of our strength is that the management of t... It is particularly impressed by the company's progress and development. The organization is efficient in all the operative departments, this includes the HR, Finance, Strategic planning, Marketing among others. The organizational structure and process is also reputable. For instance, the departments are decentralized for fast and effective decision, making. The threat is mainly the catastrophic nature f this land. Projects can be cut short or even destroyed try the numerous natural disasters. This however is our greatest opportunity as we will capitalize on re-carpeting, renovating and rebuilding the mess left behind by the calamities. Our only weakness is the workforce we have. The employees are not well versed with disaster management; the workers also require more expertise. To make a greater impact in the island and reap even more benefits, the company's human resources department intends to recruit more workers who must also be experienced. Various training and development measures will be put in place to empower the employees that we are currently having. To implement this the manager in the human resources department will organize for both on-the-job and off-the-job training. The employees who are based in the technical departments will be scheduled for on-the-job training while the rest will settle for seminars, workshops and other forms of training. To motivate the workers, the management will make a point of consulting them when doing the performance appraisal; they will also be consulted when making important decisions. To ensure that they do not resist organizational change, the workers will be involved actively in proposing the necessary changes in the company's management, strategic options and business expansion. In

Current event summary Assignment Example | Topics and Well Written Essays - 500 words - 1

Current event summary - Assignment Example The first step is to identify the key players and target the one who are most important and the one who are at the risk of leaving. They can be offered both financial as well as non financial incentives modified according to their requirements. According to the article, it is important to find out the hidden gems where the HR and the line managers would work together when the changes takes place. These will certainly help the companies to identify the talents that are hidden within the company. It can be fundamentally disagreed with the article as when the changes takes place, retaining of not only the key performers is essential but also the normal performers or the average performers is very important as they may also play a crucial role in the long run of the organization’s fortune. Moreover throwing of financial incentives does seem to be the best way of retaining the employees. Though, utilization of this method can in turn de-motivate the other performers. It may at times turn out to be an improper utilization of financial resources of an organization. There are other ways through which the employees can be retained during such difficult times and it would also maintain aid in maintaining a balance between the key performers and the others. The main reason behind choosing this article was that employee’s retention is a major problem that is faced by almost all the companies during the times of restructuring. The article helps to provide proper understanding of what can be done in order to maintain the talents in the organization. It also highlights the importance of the normal performers in supporting the changes. Such change often makes the employees nervous and frightened. Therefore it is utmost important to win the hearts and minds of the participants and also those who are associated with the change process. Although an employee’s

Business accounting - Lampeter Builder's Merchants Essay

Business accounting - Lampeter Builder's Merchants - Essay Example Vehicle running expenses 44,000 Electricity 3,000 Insurance 15,000 Stationery 2,000 208,000 Net profit 540,000 (2) Profit and Loss Statement LAMPETERS BUILDERS MANAGEMENT BALANCE SHEET AS AT MARCH 31, 2011 Amount in ? Non-Current Assets Fixed Assets (Cost) 200,000 Accumulated Depreciation (100,000) Fixed Assets (WDV) 100,000 Current Assets Trade debtors 18,000 Bank (9,000) Closing Stock 478,000 Total Assets 587,000 Current Liabilities Trade creditors 43,000 Capital 28,000 Drawings (24,000) Profit for the year 540,000 Total Equity and Capital 587,000 (3) Value Added Taxation Research The prime resource for research was the website ‘HM Revenue and Customs’ Planning and ordering What are the prevailing VAT rates in UK What rates are applicable on the business that the company is currently engaged in What are the methods and procedure of filing the VAT returns How the VAT is calculated What are the deadlines for submission of the return Presentation VAT is applicable on diff erent rate depending on the type of Goods and services offered by the company. In addition, there are some goods and services that are exempted from VAT. The VAT rates are divided into three segments Standard Rate 20 per cent Reduced Rate 5 per cent Zero Rate 0 per cent [1] Since the Company, Lampeter Builders’ Merchants is involved in the construction and material business, the following rates are applicable on the company Type of work VAT rate Construction of a new house or flat zero Converting a building into a house or flat reduced rate Renovating or altering an empty house or flat reduced rate Supplying and installing certain mobility aids for elderly people reduced rate Supplying and installing certain energy saving materials and equipment reduced rate Supplying and installing certain...VAT is applicable on different rate depending on the type of Goods and services offered by the company. In addition, there are some goods and services that are exempted from VAT. The VAT rates are divided into three segments Standard Rate 20 per cent Reduced Rate 5 per cent Zero Rate 0 per cent [1] Since the Company, Lampeter Builders’ Merchants is involved in the construction and material business, the following rates are applicable on the company At the end of every three months, the company already registered for VAT needs, to file a quarterly VAT return. The return can be filed either electronically or through paper returns. The returns, after properly completing are then sent to the following address

Nike strategic fit Essay Example | Topics and Well Written Essays - 500 words

Nike strategic fit - Essay Example Nike aspires to serve the human potential through sports - as the company states, "We feel lucky to have a genuine, altruistic reason to be: the service of human potential. That's the great benefit of sports, and we're glad to be in the middle of it."2 Kotler (1974) states that, 'an individual's beliefs or conceptions about what is desirable, good or bad - forms the value system.' In today's competitive environment such a value system plays a crucial role not only in satisfying customer needs but in taking on the competition as well. A company can acquire competitive advantage on its rivals on account of marketing efforts, brand building, value creation, innovation, operational efficiencies etc. but more important is to sustain the leading edge. Value creation forms the core component for sustaining the competitive advantage. Mele and Colurci (2006) provide distinctive paradigms for value as such.