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Business Growth and Measurement of Size

The document discusses different methods for measuring the size of businesses, including: - Number of employees - Common to measure size based on how many people a business employs. Larger businesses employ more people. - Value of output - Measuring the total sales revenue or turnover over a period of time. Higher revenue indicates a larger size. - Scale of capital employed - The total amount of money invested in the business. Businesses that operate in many countries or have more assets are generally larger. - Market share - The percentage of total market demand satisfied by a company. Having a larger market share suggests a bigger size compared to competitors.

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202 views25 pages

Business Growth and Measurement of Size

The document discusses different methods for measuring the size of businesses, including: - Number of employees - Common to measure size based on how many people a business employs. Larger businesses employ more people. - Value of output - Measuring the total sales revenue or turnover over a period of time. Higher revenue indicates a larger size. - Scale of capital employed - The total amount of money invested in the business. Businesses that operate in many countries or have more assets are generally larger. - Market share - The percentage of total market demand satisfied by a company. Having a larger market share suggests a bigger size compared to competitors.

Uploaded by

HassanKM
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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~Starter~

Complete the anagrams. MARYIRP DECONRASY SUISBNES ISATIONGORA OLHATESRSKED

Business growth and measurement of size


Lesson Outcomes: Show understanding of the different methods of measuring 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

Insufficient profit made on goods and services

Poor quality goods or services

Costs of running the business are too high


Poor management

No demand for product or service

Reasons why businesses fail

Too much competition

Costs of running the business are too high

Business is located in the wrong place

Poor cash flow

Businesses can vary greatly in terms of size. There is no perfect way of comparing the size of businesses. It is quite common to use more than one method and then compare results.

Who and Why would someone want to measure the size of a business?

Investors

Governments

Competitors

Workers

Banks

Measuring the size of a business

How do you think that you measure the size of a business?

Ways to measure size of an organisation

1. 2. 3. 4.

The number of employees The value of output The scale of its capital employed Market share

The Number of Employees


How many people the company employs could be an indication of size.
Size of business No. of people Micro 1-5 Small 6 - 99 Medium 100 249 Large 250+

Who do you think is the biggest employer in the world?

The largest employer in the world is .

Indian Railways who employ an estimated 2.3 million people

Gap employ..
150,000 employees worldwide

Nike employ..

23,000 people worldwide

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

The biggest companies are

Market Share
The size of a companys market share can be an indication of size.

Which telecommunication provider has the biggest market share?

Which UK supermarket has the biggest market share?

Product Portfolio
A company which produces a large range of products could be seen as a large company.

The Brands of Coca Cola

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.

Coca Cola operations

What about companies with no physical presence?


Internet Companies E-commerce

Complete Activity 2.5: Report writing pg 23

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

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