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Essay / Research Paper Abstract
This 5 page paper looks at the Firm Callaway Golf and the golf equipment industry and assesses the importance of economies of scale and scope in the industry, the importance of learning economies and the structure of the industry and how the firm competes in terms integration. The bibliography cites 3 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TEcallaway.rtf
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Unformatted sample text from the term paper:
as though a number of subsidiary companies. The firm is ion an industry where it is essential to gain the economies of
scope and scale, especially for the smaller items such as the golf balls. When looking at the cost of these items when sold as single units, or in sets, the
revenue per unit is relativity low. This needs to be considered in the context of the costs that are inured. Where there are any goods that need to be
machines there is the cost of tooling up production lines, and the cost of the materials. These can be a considerable cost, and when the break even point is calculated
there will be a large number of units needing to be sold before the break even point is reached. In addition to this the costs also need to take into
account the overheads. Economies of scale are very important where there are the sales of small items that can have high direct
and overhead costs. The containment of costs will increase the contribution per item that is sold. There is also the need to sell a large number of items.
An economy of scale is a reduction in cost of producing each unit as a result of increased production, realized through operational efficiencies. It
can also be remembered that there can be diseconomies of scale as well as economies. There are some characteristics that can help to create economies of scale. The ability to
order large amounts and gain discounts, leveraging both buyer and market power, facilitates that allow high levels of production and simply utilizing resources effectively. The overhead costs such as admin,
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