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SMALL VS LARGE COMPANIES - Coggle Diagram

- - - - Can be managed and controlled by the owner
    - - Owner has to carry a large burden and is unable to afford specialist managers
  - - - May be difficult to manage, especially if geographically spread.
      - Divorce of ownership from control that can lead to conflicting objectives.
    - - Can employ specialist managers
- - - - May have potential cost increases due to large scale production
    - - Average costs may be lower due to no diseconomies of scale along with low overheads.
  - - - May have limited sources of finance
      - Owners would have to deal with a large amount of stress from responsibility of taking care of different sectors as they would be able to afford specialist managers.
      - Unlikely to benefit from economies of scale
    - - Can easily afford employing specialist managers
      - Benefit from cost reductions associated with large scale production
      - Might have the change to set prices that other firms would have to follow
      - Have access to several different sources of finance
      - Able to afford advanced research and development for new products and process
- - - - may not have enough resources or employees to match customer needs
    - - can adapt quickly to match customer needs
  - - - often doesn't have personalised or very attentive customer service.
    - - has wide variety of resources for customers to reach out to such as large HR departments
- - - - Find it easier to known each workers needs
      - Easier communication with workers and customers
  - - - May suffer from slow-decision making and poor communication