Papers' Analysis - Assignment Example

Only on StudentShare

Extract of sample
Papers' Analysis

Economies of scale are the cost advantage that comes from a product’s increased output. They arise due to an inverse relation between fixed costs per-unit and quantity produced. The more cars produced in this case, the lower the fixed cost per unit, as the cost is shared among a larger quantity of cars. They may also reduce unit variable costs due to synergies and operational efficiencies. Economies of scale are in two major types; external that arises from industry size and other extraneous factors and internal that arises from inside the firm (Motavalli 1). While benefits of this concept are obvious, I think they also impact on such areas as finance. For instance, a company like Ford Group would have a lower capital cost compared to smaller firms due to their ability to borrow at lower rates of interest. However, I believe that, even with this advantage, I think there is a finite upper limit to how Ford Group can grow in achieving economies of scale. When the hybrid car production reaches a specific number, it will be more expensive to manage due to bureaucracy, complexity, and operational inefficiency. The results from Ford Group are also hard to ignore. For instance, the model T line of production and task specialization were integrated with standardization, as can be seen in their hybrid plant. ...
Download paper


Name: Instructor: Course: Date: Paper Analysis Analysis # 1 According to an article in the New York Times, Ford Group intends to implement a strategy that prices their Lincoln MKZ Hybrid in a similar way to its gas counterpart. While they do expect the gas engine to continue being their flagship car, it is also expected that the gas-electric hybrid will carve out a niche for itself…
Author : nitzschebrad

Related Essays

research papers
14 pages (3514 words) Research Paper
A Longitudinal Analysis of Satisfaction and Profitability by Bernhardt & et. al. and The Job Satisfaction-Job Performance Relation: A Qualitative and Quantitative Review by Judge & et. al.
11 pages (2761 words) Essay
iterature Review of Papers and Books regarding the development of a loyalty program.
20 pages (5020 words) Literature review
12 pages (3012 words) Term Paper
Analysis of Procter and Gamble
4 pages (1004 words) Research Paper
Market Analysis of Starbucks
8 pages (2008 words) Research Paper
Competitor analysis on Tesla
3 pages (753 words) Assignment
Got a tricky question? Receive an answer from students like you! Try us!