growth

cost-savings that occur due to external factors in the region or industry that are not under the control of the business

Innovation: when an industry becomes significant for society innovation allows businesses to collaborate with universities or other research institutions in order to improve and create new products, and reduce their own research costs

Infrastructure: a good transportation network supports quick delivery of products and helps workers arrive at work on time, increasing productivity

DISCONOMIES OF SCALE

Internal diseconomy of scale is an increase in average unit cost,

Managerial issue- it can be difficult to efficiently run an enterprise once it gets too big

Increase in size of the workforce- it can be challenging to control a large workforce. The growing size of a company may necessitate the creation of a complicated organizational structure

Communication- as organizations grow and become more complex there may be several layers between the CEO and employees, making efficient communication more difficult

External diseconomies of scale- refers to increased unit cost of production for a business due to the expansion of the industry in which the business operates

Limited natural resources- when business grow their output, they need more inputs of natural resources

Limited infrastructure- when an industry expands businesses will use infrastructure more often

Pollution- the carbon dioxide emissions from business activities across all industries is causing climate change

INTERNAL GROWTH

- Refers to expansion that is carried out by the organization itself, without working with a partner.

Internal growth is slower than external growth

Internal growth can cause cash flow problems

Internal growth can be l