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8/13/2019 Business Growth and Measurement of Size
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~Starter~
Complete the anagrams.
MARYIRP DECONRASY
SUISBNES
ISATIONGORA OLHATESRSKED
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Business growth and measurement of
size
Lesson Outcomes:
Show understanding of the different methods ofmeasuring the size of business units, e.g. number
of employees, capital employed
Show awareness of the problems of using the
different methods
Know why some new businesses fail
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Reasonswhy
businesses
fail
Poor management
No demand for product
or service
Business is located in the
wrong place
Poor cash flow
Costs of running the
business are too high
Too much competition
Costs of running the
business are too high
Poor quality goods or
services
Insufficient profit made
on goods and services
E
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Businesses can vary greatly in terms of size.
There is no perfect way of comparing the sizeof businesses. It is quite common to use more
than one method and then compare results.
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Who and Why would someone want
to measure the size of a business?
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Investors Governments Competitors
Workers Banks
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Measuring the size of a business
How do you think thatyou measure the size
of a business?
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Ways to measure size of an organisation
1. The number of employees
2. The value of output3. The scale of its capital employed
4. Market share
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The Number of Employees
How many people the company employs
could be an indication of size.
Size ofbusiness
Micro Small Medium Large
No. ofpeople
1 - 5 6 - 99 100249 250+
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Who do you think is the biggestemployer in the world?
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The largest employer in the world is .
Indian Railways whoemploy an estimated
2.3 million people
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Gap employ..
150,000 employees
worldwide
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Nike employ..
23,000 people
worldwide
http://images.google.co.uk/imgres?imgurl=http://www.tucoo.com/logo/logo_eps021/images/Nike.png&imgrefurl=http://www.tucoo.com/logo/logo_eps021/html/image16.htm&h=550&w=550&sz=27&tbnid=cM2cogvBIr4J:&tbnh=130&tbnw=130&hl=en&start=21&prev=/images?q=nike+logo&start=20&svnum=10&hl=en&lr=&sa=N8/13/2019 Business Growth and Measurement of Size
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Value of Output
The amount of sales revenue over a period of time.
If a shop sells 50 pairs of Nike football boots for 80
in a week. Its turnover for that week in Nike football
boots is 50x80=4,000
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The biggest companies are
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Market Share
The size of a companys market share can be
an indication of size.
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Which telecommunication provider has the
biggest market share?
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Which UK supermarket has the biggest
market share?
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Product Portfolio
A company which produces a large range of
products could be seen as a large company.
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The Brands of Coca Cola
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Scale of it capital employed
This means the total amount invested into a
business.
A company which has operations in a large
number of countries may be seen as large.
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Coca Cola operations
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What about companies with no physical
presence?
Internet Companies
E-commerce
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Complete Activity 2.5: Report
writing pg 23
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Research the following key features of
the QATAR national economy
Use examples to illustrate concepts such as
pollution and global warming
Some of the issues with regards to
sustainable development
The possible impact of business development
upon depletion of natural resources