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Size of firms/growth - Coggle Diagram

- - - - their average costs are likely to be lower than those of smaller rivals
    - - large firms often dominate the market
    - - small firms cannot do things that large firms can do
  - - - adapt to change more quickly
    - - as a firm becomes bigger it becomes difficult to offer customers an individual personal service
    - - small firms do not belong to trade unions so the owners are often able to restrict pay to the legal minimum wage
    - - with fewer employees, communication tends to be informal and more rapid than in larger organisation
    - - even with a lack of resources, small firms are surprisingly innovative
- - - - overwhelmed by their administration systems
    - - it may be difficult to control and coordinate because their are some many employees
    - - people can be alienated and a effort made by a single employees seems insignificant
  - - - they cannot exploit economies of scale because their output is limited
    - - they struggle to raise finance
    - - it is difficult to attract highly qualified and experienced staff as larger firms have better resources and higher wages
    - - they may find it more difficult to survive than larger firms because they do not have the resources to draw on when the economic conditions worsen