economies of scale and scope

• Economies of Scale and Economies of Scope

Economies of scale are reductions in average costs attributable to production volume increases. They typically are defined in relatio...

• Encyclopedia of Management
• A-Z

• New estimates of economies of scale and scope in higher education.

1. Introduction The substantially greater than inflation increases in college tuition during the late 1980s and first half of the 1990s ignited cons...

• Southern Economic Journal
• Vol. 70 Nbr. 1, July 2003

• Financial Services Companies Adjusting Globalization Plans, Say Researchers From the Conference Board and Duke University

NEW YORK, May 28 /PRNewswire/ -- The push by financial services and insurance companies to establish new offshore operations leveled off in 2009. At the same time, firms seeking cost reductions show greater interest in contracting with large international service providers to benefit from their economies of scale and scope, rather than creating fully owned offshore subsidiaries. These are among the findings of Financial Services Offshoring: Moving Toward Fewer Captives and Global Cost Competitiveness released today, which is based on the fifth annual study on offshoring trends by the Center for International Business Education and Research's (CIBER) Offshoring Research Network (ORN) at Duke University's Fuqua School of Business and The Conference Board. The study is part of a wider rese...

• U.S. Newswire
• May 28, 2010

• Mutual Fund Performance, Management Behavior, and Investor Costs

We examine pure no-load funds over a 5-year period. For equity funds, trading activity is negatively related to returns. Expense ratios are not significantly related to returns. Potential capital gains exposure and tax cost ratio are positively related to return. For fixed income funds, trading activity is positively related to return. Expense ratios and tax cost ratios are negatively related to returns. Mutual funds exhibit economies of scale and managers experience scale and scope economies. The individual investor is better off in a large fund that is a member of a large fund family.

• Financial Services Review
• Vol. 13 Nbr. 1, April 2004

• The Changing Structure of Cost for Japanese Securities Firms

Japanese securities firms were operating under new circumstances after the Japanese version of the Financial Big Bang was implemented. This paper examines structural changes in the Japanese securities industry by comparing the economies of scale and scope between 1998 and 2002. In particular, we focus on the online securities firms that have appeared in recent years and verify their differences from the existing ones or the impact of deregulation. This is undertaken by employing the generalized translog cost function, which can take zero outputs into consideration. The findings suggest that scale economies were observed for the online securities firms as a whole. Further, product-specific economies of scale for brokerage commissions were observed for the online securities firms. However...

• International Journal of Business
• Vol. 11 Nbr. 1, January 2006

• Commercializing High-Technology Industries

In his article "From Firm to Networked Systems," Thomas Hughes introduces concepts, such as infrastructure and networking, that are critical to today's managerial system, but, by focusing on electric utilities, the story he tells does not go beyond the arrival of the new science of electronics in the early twentieth century. Hughes, therefore, does not consider the critical role of high-technology industries -- that is, those that commercialized and brought to market new products based on new scientific learning -- in exploring the evolution of managerial systems. By analyzing the role of high-technology industries and the commercialization of new scientific learning, it can be seen how the coming of the information revolution differed from the arrival of the second industrial revolutio...

... earlier works, The Visible Hand (1977) and Scale and Scope (1990).3 In those volumes I did emphasiz... resulted not only from the "static economies of scale and scope in production" but also from "t...

• Business History Review
• Vol. 79 Nbr. 3, October 2005

• Scale and Scope

A significant number of carriers, analysts and consultants speak broadly about the importance of economies in the insurance industry. However, a more detailed, thoughtful analysis indicates that value creation from economies is elusive at best. An analysis of the 60 largest life transactions over the past six years found that insurers pursuing mergers and acquisitions for the purpose of scale economies achieved the highest immediate share returns within 10 days of the M&A announcement, more than 2% relative to other objectives. However, over the long-term, these same insurers destroyed value: -15% relative to the other carriers in the study. The analysis also strongly suggests that size doesn't lead to superior performance along any metric - total sha...

• Best's Review
• Vol. 104 Nbr. 12, April 2004

• Reshaping Systemic Risk Regulation in Europe

....2 If, in addition, central banks widen the scope of their mission by giving fluctuations in asset p...Time Inconsistency: Scale and Scope of the Problem. Against this backdrop, c... carried out jointly, usually for economies of scale and scope. The technology of each firm de...

• Brown Journal of World Affairs, The
• Vol. 16 Nbr. 2, April 2010

• Internationalization Vs. Diversification: A Study On the Drivers of Growth Strategies

This research analyzes the drivers of firm growth strategies and the relationship between internationalization and diversification based on the longitudinal study of the Volkswagen Group from 1937 until 2007. The study shows that firm resources, the needs of consumers, and the needs of the business all influence choices of growth strategies. The study also shows that internationalization need not be at the expense of diversification. Indeed, it seems to be an inevitable decision to internationalize and at the same diversify the range of offered products in order to avoid failure in the turbulent, investment-intensive automotive industry.

...The collapse of socialist planned economies in Eastern Europe and the Soviet Union, as well as...-intensive and requires economies of scale. Therefore, search for new markets is a major moti... business to achieve economics of scale and scope simultaneously. Discussion. The lack of generaliza...

• Journal of Global Business Issues
• Vol. 3 Nbr. 2, July 2009

• The Role of Hr in Cross-Border Mergers and Acquisitions: The Case of Indian Pharmaceutical Firms

Mergers and acquisitions (M&As) are increasingly becoming a strategy of choice for companies attempting to achieve and sustain competitive advantage. However, not all M&As are a success. In this paper, we examine the three main reasons highlighted in the literature as major causes of M&A failure (clashing corporate cultures, absence of clear communication, and employee involvement) in three Indian pharmaceutical companies, and we analyze the role played by the HR function in addressing them. Also, we discuss the importance of gaining the commitment and focus of the workforce during the acquisition process through employee involvement.

... corporation that aims to achieve economies of scale, (ii) Geographic roll-up M&A, where compa... to achieve economies of scale and scope, (iii) Product or market extension M&A, which refe...

• Multinational Business Review
• Vol. 17 Nbr. 2, July 2009