Page 593 - The Case Lab Book

3: Growth by acquisition as a strategy is fine if after rationalisation
and economies seeking it produces efficiency savings to

warrant the cost of the acquisition. However, the plan was not a
success. By 2012, the Scotsman business had been squeezed
to the point where the website was a shadow of its former self

and resources had been slashed and hundreds of employees
sacked. The Scotsman currently averages around 30,000 sales
on weekdays.

Economies of Scale