Edexcel Business A Level Revision

Growth - A common corporate objective which means expanding the sales revenue of a business, probably in the hope that profits will increase too. Diseconomies of scale - occurs when a business grows so large that the costs per unit increase. As output rises, it is not inevitable that unit costs will fall. (UNIT COSTS RISING AS WELL OUTPUT RISING) When a business expands, they expect economies of scale, but are often shocked to find that they are outweighed by diseconomies. Diseconomies of scale can occur due to: POOR INTERNAL COMMUNICATION BETWEEN DIFFERENT DEPARTMENTS AND ALONG THE CHAIN OF COMMAND - the more layers there are in the business hierarchy and the wider the spans of control for managers, the greater the risks of workers receiving unclear instructions about what they are supposed to do. POOR EMPLOYEE MOTIVATION - which is where workers can feel more isolated or alienated and less appreciated in a larger business so their loyalty and productivity may red...

Chain of command - sets out the levels of authority for giving and taking instructions within an organisation. The chain of command enable information and decisions to be passed through the organisation, from those making decisions to those affected by them. Each individual will have links and responsibilities to others both above and below in the hierarchy. Tall hierarchies will have a long chain of command. Flat hierarchies will have a short chain of command The person at the top of the hierarchy is in charge of everyone. The middle row are next in line of authority and in turn Brenda is in charge of the 2 people below her on the bottom row.