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=N
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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