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UNIT 1 BM MINDMAP - Coggle Diagram

- - - - Benefits: Brand Image → Customers → Revenue. Partnership → Growth potential. Investment → Growth. Greater potential employment
      - Drawbacks: Increased Costs → decrease in profits
      - Ethics refer to approaching things in a morally good way
- - - - 1) Technical Economies - being able to buy new and more efficient machinery which increases capacity for production and reduce average cost per unit.
      - 2) Managerial Economies - being able to employ better managers/staff who enable a business to be more efficient
      - 3) Financial Economies - being able to borrow money at lower rates of interest and having more sources of finance.
      - 4) Marketing Economies - when the cost of advertising per unit falls as a business can spread the marketing costs over more product.
      - 5) Purchasing Economies - bulk buying goods enabling you to purchase more for less.
  - - - 1) Communicaation problems - the bigger the organization is, the more difficult it becomes to ensure that employees know what they need to be doing.
      - 2) Motivation - where a business gets too big, employees who do not feel valued will not work as hard.
- - - - Suppluers, Governments, Banks, Special interest groups, Competitors
    - - Potential disagreements that may occur between different stakeholder groups
        
        EXAMPLE: MANAGERS may want EMPLOYEES to be as productive as possible. But employees prefer to work under less stressful conditions
    - - Managers, Shareholders