In this article we will discuss about the diversification of firms. When considering 'synergy', it is important to note that businesses can be similar with respect to some resources while being different in terms of others. The key to successful diversification is to group together those businesses which, despite their differences, have at least one common resources need. Such businesses [...]
In this article we will discuss about the distribution function and its strategy as a part of business planning and strategy. Distribution Function: The function of distribution in case of a large firm can be seen from three view points: (a) From a Value-Added Perspective: The distribution function provides 'time and utility'. An inability to deliver goods within the promised [...]
After reading this article you will learn about:- 1. Definitions of the Size of a Firm 2. Measures of Size 3. Concepts. Definitions of the Size of a Firm: In an industry there are firms of varying sizes. The costs of production in these firms of different sizes vary. Economists are concerned with the best size of a business unit, [...]