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Fundamentals of scale

In: Surfing the Global Tide

Author

Listed:
  • Michael S. Wynn-Williams

Abstract

In the course of defining the generic structure of a mass-market automobile manufacturer it is necessary to establish the forces that form the company. These give the firm the structure and size of its operations. The organizational structure of the firm is defined by the degree of vertical integration, involving the decision whether to source production externally or produce internally, known as the make-or-buy decision. The size of operations is defined by the available economies of scale which encourage the firm to adjust output to a point where costs per unit are minimized.

Suggested Citation

  • Michael S. Wynn-Williams, 2009. "Fundamentals of scale," Palgrave Macmillan Books, in: Surfing the Global Tide, chapter 0, pages 20-40, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-23359-1_2
    DOI: 10.1057/9780230233591_2
    as

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