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Small vs Large Businesses - Coggle Diagram
Small vs Large Businesses
Customers
Large Business Disadvantages
May not offer personal customer service
Large Business Advantages
Large firms are able to offer customers greater price discounts on products
Small Companies Disadvantages
Unlikely to benefit from economies of scale due to low production rates
Small Companies Advantages
Personal Customer service to meet needs
Communication
Large Business Disadvantages
Decision making may be slow due to poor communication
Large Business Advantages
Can afford employ specialist managers
Small Companies Disadvantages
May contain language barrier with customers
Small Companies Advantages
Good communication with workers and customers to identify and meet needs
Cost
Large Business Disadvantages
Average cost may increase due to diseconomies of scale
Large Business Advantages
May be able to set prices that other firms have to follow
Small Companies Disadvantages
May have limited sources of finance
Unlikely to benefit from economies of scale due to low production rates
Small Companies Advantages
Cost controlled by Owners
The average cost of supply may be low due to a lack of diseconomies
Management
Large Business Disadvantages
Managing may be difficult if multinational
Objectives may be conflicting due to divorce of ownership
Large Business Advantages
Can afford to employ specialist managers
Small Companies Disadvantages
Sources of finance may be limited
Big responsibility for managers as they may not be able to afford specialist managers such as a CMO
Key decisions that the business depends on to survive
Small Companies Advantages
Flexible to change
Better ethics for workers as needs are easy to account for