A2 Business 9609 | External Economies & Diseconomies of Scale Explained скачать в хорошем качестве

A2 Business 9609 | External Economies & Diseconomies of Scale Explained

In this A2 Business Studies (9609) lecture, we explain External Economies of Scale and External Diseconomies of Scale, an important concept in operations and industry growth. External economies of scale occur when businesses benefit from the overall growth of an industry, which reduces costs for firms operating within that industry. However, industry expansion can also create external diseconomies of scale, where increased competition for resources raises costs. This topic is frequently tested in Paper 3 and Paper 4, especially in analysis and evaluation questions. What you will learn in this video: • Meaning of external economies of scale • Examples of external economies, including: – improved infrastructure – availability of skilled labour – specialised suppliers – industry support services • How industry growth reduces costs for businesses • Meaning of external diseconomies of scale • Causes of external diseconomies, such as: – increased competition for labour – higher wages – rising land and rental costs – congestion and infrastructure pressure • Impact of external economies and diseconomies on business costs • How this topic appears in A2 Business exam questions 👨‍🏫 About Sir Osama Musani Sir Osama Musani is a Cambridge Business teacher known for simplifying operations management topics and teaching examiner-focused explanations that help students achieve top grades. #A2Business9609 #ExternalEconomiesOfScale #ExternalDiseconomies #OperationsManagement #BusinessGrowth #Paper3 #Paper4 #StudyWithMusani #AStarStrategy #CambridgeBusiness