Measuring business size

As above

3. Name business of different sizes:
Small
Medium
Large

4. https://www.youtube.com/watch?v=Qs5eSFD8CTc
https://www.youtube.com/watch?v=lb7wkIcRtyg
https://www.youtube.com/watch?v=o2RfyGcRVcI

5. Measuring business size

Capital employed

Value of output

Number of employees

Market share

6. The end

Name as many ways as you
can of measuring a business

What are the limitations to 'X'
method of measuring a
business size?

7. List and explain

Student 1... method of measuring business size

Student 2... limitation of that method

Student 3 etc

8. Measuring the size of a business
What are the four methods:
1.
2.
3.
4.

9. Which business is biggest?
A B C
Revenue $
280,000380,000410,000
Capital employed
$ 200,000500,000350,000
Number of
employees 60 35 50

10. Which business is biggest?
A B C
Revenue $
280,000380,000410,000
Capital employed
$ 200,000500,000350,000
Number of
employees 60 35 50
They are all the biggest!!!

11. What are the limitations to
measuring the size of a business?
Using different meaures leads to....... so its is a
good idea to use more than one...... because....
So in our example... B could be the biggest overall,
despite having fewest employees.
It all depends... SO BE CAREFUL

12. Why some businesses grow and
others remain small
Growth is a objective of most, but not all
businesses.
For example a chocolatier making specialist,
hand made chocolates may want to remain
small, whilst a chocolate manufacturer
might want to produce chocolate for the
mass market will want to grow.

14. https://www.youtube.com/watch?v=MrNtVV9TAJA
https://www.youtube.com/watch?v=j1YkNWM4nEk

15. Staying small
Staying small:
1. Can maintain quality
2. Can adjust to changing customer needs
3. Maybe the market is too small to grow.

16. Reasons to grow in size
Increase in profits
Increase in market share
Economies of scale
Greater power to control the market
Protection from risk of takeover

17. Growth can be internal or external
Internal growth:
Increasing the number of goods it can produce
Developing new products
Finding new markets for their products
External growth:
Horizontal integration
Forward vertical integration
Backward vertical integration
Conglomerate integration

18. Air India case study p37
Air India is trying to achieve internal
growth in these two ways...
Air India could ….. in order to achieve its
growth objective, because...
I think Air India will achieve its plans for
growth because...

19. Activity 3.3 p.38
1. Copy the table
2. The main advantage to a fruit canning
factory of backwards vertical integration is...,
I believe this to be so because....
3. The main advantage of conglomerate
integration is...
4. An overseas holiday business integrating
with a travel agency brings the following
benefits...
5. Large and small car manufacturers
integration brings the following advantages..

20. https://www.youtube.com/watch?v=dGO1oEwxYWA
Willie's Cacao