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Small vs Large Organizations - Coggle Diagram
Small vs Large Organizations
Small Company (basel)
Communication
Advantage: Easier communication with workers and customers.
Disadvantage: May not be diversified enough, greater risk of negative impact
Advantage: Find it easier to know each other, many staff prefer to work for a smaller more "human" business
Costs
Advantage: Small firms have lower average costs due to low diseconomies of scale
Disadvantage: Have limited access to sources of finance
Customers
Advantage: Offer personal service to customers
Advantage: Often able to adapt quickly to meet changing customer needs
Disadvantage:
Management
Advantage: can be managed and controlled by the owners
Disadvantage: May find that owners hold a large burden of responsibility if unable to hire specialist employees
"Large Company"
Communication
Perhaps a disadvantage
of being a larger
organization is weaker
of communication
between the owner
and the rest of the
entire company.
M
Costs
Perhaps an advantage
that larger organization
acquire is economies
of scale
M
advantage : Have access to several sources of income , as well as cost increases which would be a disadvantage
Customers
Perhaps an advantage
that larger organizations
that sell products with
high demand is an
increase in customers
and profit.
M
Perhaps a disadvantage
the large organizations
can face is being
in niche markets
with small demand
leading to less profit.
M
Management
advantage : can afford to employ specialist professional managers Disadvantage :difficult to manage especially if geographically spread
development of new products