management and info systems

Why

There are common systems to make management of companies more effcient

Explain the systems

1. Economies of scale

2. Global suppply chains

3. Outsourcing

4. Offshoring

Explan economies of scale

The concept of increasing profits by producing a larger amount of products, as overall the average price to manufacture each product is lowered. Companies save money by upscaling their production e.g. buying and shipping in bulk to save money

Explain global supply chains

Organised management of product flows form when the manufactured to when delivered. Due to ability to communicate = compnies have diff stages of production in diff countries = save money

Explain outsourcing

Hiring other companies to complete tasks that are essential = save money if done in LICs due to low labour costs

Explan offshoring

Relocating company aborad = save money due to lower taxes, labour costs and prices of material